China blocks huge Vale ships

China banned a giant new class of ship from its ports Tuesday. The move checks efforts by mining giant Vale SA to cut the cost of shipping iron ore to its largest market and risks raising trade tensions with Brazil, where Vale is based.

China’s trade ministry said it had banned Vale’s 400,000-dead-weight-tonne Valemax vessels, along with other giant freighters and tankers, to protect its own ocean-freight industry. Plunging shipping rates have slashed shipping company revenue.

Chinese ship owners fear that Vale’s goal is dominance of the world ironore market.