Brazilian steelmaker ArcelorMittal has been unable to receive 10,000 mt of steel due to the lack of transport of the material by logistics company Rumo ALL, according to a media report.
A media report said the steelmaker has not received material for over two months, despite the intervention of the nation’s ground transportation agency, ANTT, which obliged Rumo to comply with the transportation contract.
The product is said to be stopped in the intersection of a railway that connects the cities of Bauru in the state of Sao Paulo and Corumba in the state of Mato Grosso do Sul.
Rumo workers say there has been a “tactical delay” in the section that connects Tres Lagoas and Inocencia, both in the state of Mato Grosso do Sul, which caused the transportation of the steel to be stopped.
ANTT ordered Rumo through an interlocutory injunction in March to comply with the contract with ArcelorMittal by transporting 10,000 mt of steel. Despite ANTT’s move, the ground transportation agency needed to act again to compel a contract to be formalized between the two companies.
ArcelorMittal said Rumo hasn’t continued the operations and hasn’t transported the products.
In March Rumo said transportation wasn’t interrupted, however, the contract with ArcelorMittal has expired on February 28. Rumo said at the time the two parties are negotiating a renewal of the contract.
In response to a query from SteelOrbis, ArcelorMittal said the transporation contract was interrupted unilaterally by Rumo in November 2015, and the company is maintaining a dialogue with Rumo to find a solution for the case.