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21 J. Int'l Arb. 355 (2004)
Choosing the Appropriate Venue: Maritime Arbitration in London or New York

handle is hein.kluwer/jia0021 and id is 369 raw text is: Journal of International Arbitration 21(4): 355-366,2004. O 2004 Kluuwr Law Intemational. Printed in The Netherlands Choosing the Appropriate Venue: Maritime Arbitration in London or NewYork? Petros N. TAssIos* The origins of maritime arbitration can be traced as far back as the voyages of ships owned by Phoenicians carrying the cargo of Greek traders. Ever since, arbitration has played a significant role in waterborne commerce. Today, this mode of settling disputes is extremely popular in the maritime sector and London and New York have emerged as the main venues of maritime arbitration. I. MARITIME ARBITRATION IN LONDON Today, London is the major seat of maritime arbitration. It is estimated that a mini- mum of 3,000 arbitral appointments take place every year.1 This is equivalent to seventy per cent of maritime arbitrations conducted worldwide.2 Ninety per cent of them are international (at least one of the parties is foreign)3 and the claims are concerned mostly with tramp shipping and liner shipping.4 The London Maritime Arbitrators Association (LMAA) is the leading arbitral centre and in the year 2000, 2,622 arbitrations were held under its auspices.s Maritime arbitration in London offers certain advantages for parties who decide to resolve their disputes in the United Kingdom.6 First, London has a long established tradition of maritime arbitration. The objectivity of the English courts, as well as English arbitrators and lawyers, are the key reasons why * LL.M., Cardiff University, Claims Handler, Piraeus. Between 1983-1987, as far as arbitral appointments/awards are concerned, the following data is available: 4,500/700 (1983), 3,600/725 (1984), 3,400/615 (1985), 3,500/502 (1986), 3,470/500 (1987). Approximately 20% of arbitrations result in an award, while the rest (80%) reach a settlement. See A. TsAvDAsIms, D mErHNEs NAuTIKE DArrhslA 477 (1999). According to International Financial Services of London, more than 4,500 arbitrations and mediations were undertaken in London in 1998. Recently, the LMAA published some interesting information about the number of arbitrations conducted in London in 2001: estimated number of ad hoc arbitrations: 500; Centre for Dispute Resolution: 467 arbitrations; London Court of International Arbitration: 71 arbitrations; International Chamber of Commerce: 61 arbitrations; Trade Associations (estimate): 500; London Maritime Arbitrators Associa- tion: 2,622 (figure for 2000). See <www.ifil.org.uk/uploads/PBDisputePjesolution_2000.pdf>. Bruce Harris, a former president of the LMAA, believes that London has more than 3,000 maritime arbitration appointments a year. See U.K.Arbitration Awards in Line to be Published, Lloyds List, December 2, 2002. 2 TSAVDAR11DIS, supra note 1, at 477. 3 In 20% of claims, neither party is based in England. M. Cohen, Excluding Appeals to the Courts in Maritime Arbitration, 2 LLOYD'S MARTInME & ComasaescLi L. Q. 2 (No. 1,1992). TSAVDAsuS, supra note 1, at 478. In London, the largest maritime arbitration that has ever taken place is still in progress. It is regarding The Solitaire and began in 1996.The first stage finished two years ago and included nine awards. It is a dispute about delay and quality of work in connection with the conversion, of a 125-ton bulk carrier into a pipe-lining vessel. The damages claimed are approximately £450 million and two million documents have been referred to. The arbitration is expected to finish in 2005. LargestAbitration in History Ends First Stage, THE LAWYER, March 25,2002. London maritime arbitration is not a precise term, but it is used to describe an arbitration which takes place in London, where the dispute concerns a ship. See C. AMBROSE AND K. MAXWELL, LONDON MAuTsamE ARsrrRA-ON (2d ed. 2002). Copyright © 2007 by Kluwer Law International. All rights reserved. No claim asserted to original government works.

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