You want to know what they told me. 1) Cash flow will not change through 2008. So he added the dividend for QTRs 3 & 4 should be in line with the $0.91 as in QTR 2. 2) Brazilians have raised the price on iron ore. China is in tslks with them but is not buying iron ore at this time. They think that an agreement will made soon. 3) Current vessel rates for their fleet are $40K -$45K /day. 4) Six (6) vessels come off contracts in 1ST half of 2009, 1ST one in Feb 2009. They expect the new rate to be less than $40K - $45K/day but higher than the current market rate of $25K /day.
One thing the Chinese announced, after RIO threatened them with a 10% increase, was they were going to rely more on domestic sources of iron ore. It might be a bargining tactic, but the Chinese have a history following through on threats, if they need to.