Part IV The Role of Arbitrators in the Development of Shipping Law, 17 The Importance of Commercial Knowledge in Maritime Arbitration: Observations from New York

Subject(s):

Jurisdiction — Arbitrators — Statehood, jurisdiction of states, organs of states

This chapter argues that maritime arbitration is still a viable concept for ship owners, charterers, shippers, or buyers of commodities despite issues such as rising arbitration costs; the non-applicability of the American Rule with regard to the payment of fees; and the absence of any right to appeal, evidentiary rules, or pre-hearing disclosures. It goes on to examine the advantages arbitration over litigation, and their peculiar weight and relevance in the shipping field, especially the opportunity to have one’s case decided by arbitrators with strong commercial knowledge and experience and who therefore understand the commercial context of the dispute they are being asked to resolve. The chapter illustrates this advantage by reference to a number of recent cases decided by arbitral tribunals in New York, emphasizing that it is mainly this expertise which gives arbitration the edge over the courts.