q is ago affacted by fmg shipping problems, page-2

I thought the problems were a bit different.

AGO started off with FOB shipping and intends to keep it this way. So, they are not interested on making a margin on the shipping, or arranging it. They just get paid when the ore leaves the port.

FMG had contracts for shipping and supply locked in at much higher shipping charge rates and so when the shipping charges collapsed, it was better for the clients to mess around with the deals, and not accept shipments, etc. and generally renege on contracts with these high shipping cost built in, in favour of spot contracts with the cheaper shipping charges.

So, FMG really had to do something even though it looks drastic. AGO does not have to change their methodology because it is the right one in this climate.