Fortescue Metals has been forced to pay millions in compensation to a shipping contractor after losing a court battle in the UK.
The iron ore miner lost a compensation battle to Zodiac Maritime after the miner suspended charter contracts due to “turmoil in the international freight and iron ore markets,” Fortescue announced in a statement.
Other shipping contracts in dispute were renegotiated and settled prior to the court hearing.
The conclusion of the dispute with Zodiac means the contracts are now terminated.
Fortescue was sentenced to pay damages of US$78 million, which covers the amount lost when the contracts were suspended up to the present time, including future revenues forgone with the termination of the contract.
On top of this, Fortescue is also in the midst of six other shipping disputes.
With the compensation award, Fortescue will be forced to pay a total of US$150.6 million in payments for shipping disputes.