The role of commercial arbitration in resolving transport disputes: international practice

Аннотация

The article examines the role of commercial arbitration in resolving transport disputes, with a focus on international practice. Special attention is given to the advantages of arbitration over litigation, as well as the challenges associated with the enforcement of arbitral awards in different jurisdictions. Major arbitration institutes, such as the London Maritime Arbitrators Association (LMAA) and the International Chamber of Commerce (ICC), are reviewed. The article also analyzes differing scholarly views on the effectiveness of arbitration in transport disputes, highlighting issues related to the enforcement of awards and the high costs of arbitration procedures. Keywords: International commercial arbitration, Chamber of Commerce and Industry, investment climate, Arbitration Court, legal framework, business, economics. obligations. Introduction: Commercial arbitration plays a key role in resolving disputes arising in the field of transport law, Since these disputes often arise in an international especially in the context of international context, involving parties from different jurisdictions, transportation. The development of global trade and arbitration has become a preferred method of dispute the increase in the volume of cargo transportation resolution due to its flexibility and the recognition of require effective dispute resolution mechanisms that arbitral awards in many countries, which is ensured by can take into account the specifics of transport the New York Convention of 1958[1, Article 1]. operations and ensure prompt and fair resolution of One of the key advantages of arbitration in transport disputes. Commercial arbitration provides such disputes is its international nature. Since transport opportunities, offering an alternative to state litigation. operations often involve crossing borders, arbitration This article examines the international practice of using provides a more neutral and universal forum for arbitration to resolve transport disputes, including its dispute resolution compared to national courts. This is advantages, features and the main arbitration especially important in cases where the parties to the institutions. contract are located in different countries with Transport disputes cover a wide range of issues related different legal systems. Commercial arbitration also to the carriage of goods and passengers, the use of attracts parties due to the ability to appoint arbitrators vehicles, and the performance of transport contracts. with specialized knowledge of transport law. This is The most common disputes in this area concern: especially relevant in complex cases related to maritime transport, which require a deep • Violations of the terms of carriage; understanding of the specifics of charter parties, bills of • Damage or loss of cargo; lading and insurance terms [2, p. 1325]. Arbitration • Disputes under charter agreements; provides the parties with a high level of confidentiality, • Claims under bills of lading; which can be important for protecting commercial secrets and the reputation of companies. In addition, • Issues related to delay or failure to perform arbitration allows the parties to independently International Journal of Law And Criminology 13 https://theusajournals.com/index.php/ijlc International Journal of Law And Criminology (ISSN: 2771-2214) determine the procedural rules and the place of the arbitrators sided with the shipper, pointing out the lack proceedings, which makes it more flexible than of evidence of adequate actions by the carrier to litigation [3, p. 302]. protect the cargo during the voyage [10, p. 43]. In this case, the arbitration award was recognized and Major Arbitration Institutions in Transport Disputes enforced under the New York Convention in the One of the most prominent arbitration institutions carrier’s jurisdiction, which demonstrated the specializing in maritime and transport disputes is the effectiveness of arbitration as a mechanism for London Maritime Arbitration Association (LMAA). resolving disputes with an international element. LMAA provides a platform for resolving disputes Another illustrative example of arbitration in the related to shipping, including charter parties and bills transport sector was considered by the Singapore of lading. LMAA is known for its specialized approach International Arbitration Centre (SIAC) and concerned and highly qualified arbitrators, making it one of the a dispute over the failure to meet the schedule of most popular forums for maritime disputes [5, p. 15]. delivery of air cargo. The consignee claimed damages The International Chamber of Commerce (ICC) also for financial losses incurred due to the delay in delivery, plays an important role in resolving transport disputes, and the arbitrators ultimately awarded compensation, especially in international trade. The ICC Court of finding the delay in delivery to be material [11, p. 29]. Arbitration offers flexibility in the choice of arb