CIArb Features

The advantages of London ad hoc Maritime Arbitrations

12 Mar 2019

The world of shipping is a universe apart. It has its own traditions, language and values. It even has its own preferred dispute resolution method, namely ad hoc arbitrations. It is estimated that around 80% of all maritime arbitrations are ad hoc proceedings, conducted under the London Maritime Arbitrators Association (LMAA) Terms, also known as “London Arbitrations”.[1] Maritime disputes are solved in a quick and simple manner. As Stephen Kenny QC pointed out, “Maritime arbitration is not regarded as pathological on the industry, but rather part and parcel of it. Maritime arbitrators are not regarded as aliens intruding on that business, but as participants in the running of the industry.”[2]

It is clear that the maritime community favours arbitration over litigation. But why ad hoc instead of institutional arbitrations? Practitioners seem to agree on a number of advantages that ad hoc arbitrations give to parties in the specific context of the shipping world. It is all ab