Rio Tinto was sued for $4.6 million by Glory Wealth Shipping Pte., which claimed that the world's third-largest miner had failed to deliver a cargo.
A Rio Tinto Group unit was sued for $4.6 million by Glory Wealth Shipping Pte., which claimed that the world's third-largest miner had failed to deliver a cargo it was contracted to carry. The M.V. Rubin Grace was left at port for 13 days because Rio Tinto Shipping Asia Pte. didn't load 160,000 metric tons of iron ore, Glory Wealth said in a Nov. 24 U.S. District Court, Southern District of New York filing. The shipping line had been contracted to transport the cargo from Australia to China, it said.
Glory Wealth joins Zodiac Maritime Agencies Ltd. and Golden Ocean Group Ltd. in filing lawsuits against other companies amid a collapse in bulk shipping rates and slumping demand caused by an economic slowdown. The Baltic Dry Index, a gauge of shipping costs, has fallen 94 percent since May 20.
Amanda Buckley, a Rio Tinto spokeswoman, wasn't available when called in Melbourne. Glory Wealth's head of legal affairs William Lu wasn't immediately available to comment.
The case is Glory Wealth Shipping Pte. v. Rio Tinto Shipping Asia Pte., 08cv10214, U.S. District Court, Southern District of New York.