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Bloomberg quoted China Ocean Shipping Co the nation biggestoperator of dry bulk ships said Vale SA was refusing to use itsvessels to protest a Chinese ban on the Brazilian miner'smega-ships. Mr Ma Zehua President of Cosco said the state owned company, knownas Cosco, expects a big impact on operations from the boycott andit's considering filing a complaint with China'sMinistry of Commerce He said that Vale, the world biggest iron-ore producer has shunnedCosco fleet for about two months, even if it meant using moreexpensive ships from other owners. Unit China Cosco Holdings Cofell to the lowest in almost four months in Hong Kong. He added that "Many recent steps taken by Vale aren'trational. We believe their decisions are based on their perceptionthat Cosco is doing something to lobby the government and not allowValemaxes into Chinese ports." Mr Ma said Cosco has safety concerns about the Valemax vessels,which are almost as big as the Bank of America Tower in New York.The miner plan to spend at least USD 8 billion on a fleet of 35mega ships has also hit shipowners earnings by creating newcompetition and stoked tensions between Brazil and China accordingto Johnson Leung. He added that "We don't think the 400,000-ton iron-orecarrier designed and built by Vale is a safe design. Over the yearsahead, we may see a growing number of safety problems." Vale, based in Rio de Janeiro, didn't comment on whether itwas boycotting Cosco or on safety concerns in reply to BloombergNews questions about the topics. The company has previously said itexpects to eventually win Chinese permission to use the ships. It said that "As usual, Vale respects China sovereigndecision about the issue." The miner sold 47% of its iron ore and pellets to Chinese customersin the first quarter up from 41% a year earlier. China transportministry spokesman Mr He Jianzhong didn't answer a call tohis office in Beijing today. China Cosco which operates commodity vessels and Asia biggestcontainer ship fleet fell 4.7% in Hong Kong to HKD 4.04, the lowestclosing price since January 16. The Tianjin based company hastumbled 44 percent in the past year. Rates for capesize vessels which are about half the size ofValemaxes were the lowest on average since at least 2000 in thefirst quarter because of a glut of ships and slower Chinese demandfor iron-ore shipments. China Cosco which operated 88 capesizevessels as of March 31 posted a first quarter loss of CNY 2.7billion. The capesizes accounted about half its dry bulk capacity. Source – Bloomberg. We are high quality suppliers, our products such as China HD 720P IP Cameras , Portable Cellphone Jammer Manufacturer for oversee buyer. To know more, please visits 1.3 Megapixel IP Cameras.
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