After standoff, Vale and Cosco both claim shipping victory

[SHANGHAI] In the end, the answer to Brazilian miner Vale's Chinese shipping problem turned out to be in the problem itself.

For two years, Vale SA's Valemax mega-ships - designed to cut the costs of transporting iron ore to China - have not been allowed to dock at Chinese ports, stalling the miner's US$4 billion strategy. Behind the safety concerns blamed for the ban, industry insiders said the Chinese shipping industry, led by Cosco, lobbied hard to keep out the Brazilian ships.

But the argument is now moot because Vale on Friday announced a deal with Cosco, and analysts forecast the Valemax ships will soon be docking in China.