WISCO inked long-term ZA iron ore transportation contract

Sep. 22 MetalBiz--On the afternoon of September 21, WISCO signed the long-term transportation contract with Zodiac Maritime Agencies Ltd. from South Africa to China. The move marks that WISCO further strengthens the co-operation with well-known international ship company and stabilizes the cost of long-term iron ore transportation overseas.

As one of the global largest ship enterprises, Zodiac Maritime Agencies Ltd. has long-term and friendly relationship with WISCO. WISCO reduces efficiently the transportation cost of importing iron ore. From 2007 to 2008, the two sides signed 7 long-term chartering ships contracts, which saved US$80mln of international shipping freight, and sublet ships had achieved more than US$10mln for WISCO.

After the financial crisis in 2008, both steel market price and international freight sharply plunged, which reinforced WISCO to adjust the capacity and made the two parties faced up to the severe tests. WISCO repeatedly talked with Zodiac Maritime Agencies Ltd., mentioning to bring down the 2009 transportation price properly and granting the moderate supplementary within the contract period.

Zodiac Maritime Agencies Ltd. had its eyes on long-term interests, under the condition of over half of ships halting the operation and no revenue, to accept the advice of WISCO. The two sides came to a conclusion and inked the agreement to join their hands to deal with the financial crisis.