Australian-based Fortescue Metals Group will be subjected to pay millions in compensation to shipping contractor Zodiac Maritime after losing a court trial in the United Kingdom.

A representative of Fortescue said they will settle with Zodiac for $US78 million or $A84.3 million to cover charges spent by Zodiac, including its future revenues over the full contract term.

The company also disclosed that court action started when Fortescue suspended numerous charter contracts in 2008 due to disturbance in international freight and iron ore markets.

"Other shipping contracts that were in dispute were renegotiated and settled prior to any court hearing," the representative of Fortescue said.

"These settlements enabled Fortescue to lock in shipping rates at much lower levels than originally contracted."

Contracts between Zodiac and Fortescue are now terminated.

The company said it already disbursed a payment of $US20 million or $A21.62 million to cover the damages for Zodiac's account in 2010. However, an additional settlement of $US58 million or $A62.7 was ordered by the court.

Fortescue argued that it already cost the company $US72.65 million or $A78.53 million as settlements for additional six suspended charters.

The Zodiac settlement will cost Fortescue a total of $US150.6 million or $A162.79 million.

In February 2009, Fortescue informed the Australian Securities Exchange that an estimate damage will round up to $A184.84 million from shipping conflicts with Zodiac.

Shares in Fortescue Metals Group went down to two cents at $4.82 on Thursday.