Vale Iron Ore Carrier Could Sink: Report

NEW YORK ( TheStreet) -- One of the world's biggest iron ore carriers is experiencing problems in the Ponta da Madeira port in Brazil which might impact Vale's ( VALE) shipments, according to a Reuters report.

The carrier, Vale Beijing, was supposed to leave the port on Sunday but Reuters said the ship has at least two broken ballast tanks and water is getting into the cargo hold. Reuters said the ship could sink.

About one-third of Vale's output comes from this port, Reuters said. This is the second problem with this new larger dry bulk carrier that Vale uses to compete better with Rio Tinto ( RIO) and BHP Billiton ( BHP), which have major mines located closer to China, Reuters said.

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