Posted in | News | Iron Ore | Mining Business

Fortescue Metals Settles Shipping Dispute

A terminated shipping contract has cost Fortescue Metals Group US$ 3.7 million. The iron ore miner had cancelled a five year shipping contract with Armada in January 2009. The Singapore based Armada then brought arbitration proceedings against Fortescue seeking alleged damages worth US$70 million.

Fortescue had also offered Armada $4 million to compensate for the two shipments that Fortescue had suspended in December 2008 before cancelling the contract for shipping. This was based on the global financial crisis at that time which had created a slump in the iron ore demand worldwide.

Fortescue had made the offer even before the arbitration hearing and Armada had at that time rejected it. The Fortescue Metals Group is Australia's third largest iron ore exporter. Fortescue has posted a profit of $681.62 million for the fiscal year 2010.

With the finalisation of the dispute the settlement of the shipping contract cancellation is in order. The damages to be paid are far less than what Armada had originally claimed. The shares of Fortescue climbed 2.9 % after the facts were confirmed.


Please use one of the following formats to cite this article in your essay, paper or report:

  • APA

    Fortescue Metals Group Ltd. (2019, February 18). Fortescue Metals Settles Shipping Dispute. AZoMining. Retrieved on June 07, 2023 from

  • MLA

    Fortescue Metals Group Ltd. "Fortescue Metals Settles Shipping Dispute". AZoMining. 07 June 2023. <>.

  • Chicago

    Fortescue Metals Group Ltd. "Fortescue Metals Settles Shipping Dispute". AZoMining. (accessed June 07, 2023).

  • Harvard

    Fortescue Metals Group Ltd. 2019. Fortescue Metals Settles Shipping Dispute. AZoMining, viewed 07 June 2023,

Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback
Your comment type