Arbitration clause

During the performance of any contract of carriage of goods by sea, a dispute can arise between the parties to the contract. The document containing the contract generally contains a clause stating how and where the dispute is to be resolved, and therefore which country’s law will apply to the resolution of the dispute.

For example, cl. 30 of MULTIFORM 1982/1986 states:

“Any disputes arising under this Charterparty are to be referred to arbitration in . . . and subject to the law applicable to Charterparty disputes in the city of arbitral forum.

Except where it is the general practice in the selected arbitral forum for such disputes to be arbitrated by a tripartite tribunal, one arbitrator to be appointed by each of the parties, and in case the arbitrators shall not agree, the issues in contention shall be submitted by an umpire selected by the two arbitrators . . . The decision of the arbitrators or umpire … shall be binding on the parties, subject to the applicable law.”