Mapping The Developments In Maritime Arbitration: Unraveling The Trends And Challenges
- IJLLR Journal
- Jan 31
- 2 min read
Vaidik Sohani, School of Law, Forensic Justice and Policy Studies, National Forensic Sciences University
ABSTRACT
Development in the various facets of dispute resolution has been a very dominant reason for expanding the efficiency of globalization. Countries and people throughout the globe engage in a legal relationship, premising the aspect that there are ample means of dispute resolution, and there exists an affirmative guarantee that at any point in time, no party will be deprived of their rights and privileges. One of the foundational aspects of globalization is the continual expansion of trade and commerce, mainly through means of seas and the ocean. Numerous legal relationships are created daily in the form of Charter-party agreements for Non-liner ships and Bills of Lading for transmission of goods at distinct locations worldwide through liners. Port authorities daily enter into contracts of bailment, registration of vessels, and transfer of bills of lading to other ports and shipping companies, and offshore oil field operators enter into contracts with refineries, coasting vessel owners, and other individuals for the sale of oil extracts petro-chemicals from the seas and ocean as part of concerned exclusive economic zones. All such multifaceted economic activities have one thing in common, i.e., the clauses for dispute resolution. Since time immemorial across the globe, maritime dispute resolution has been governed through standard mutually agreed laws adopted by signatory countries through subsequent ratifications. Marine disputes are predominantly addressed through negotiation or arbitration. Maritime arbitration is a commonly observed practice globally where the concerned party has the autonomy to select the seat and venue of arbitration in case of institutional arbitration at their convenience and mutually appoint an arbitrator in case of ad-hoc arbitration.
India, being a country rich in trade and commerce mainly due to its peninsular geography, has displayed an adaptive approach to identify the need for increasing maritime trade and commerce and has amalgamated maritime dispute resolution centers into its as part of maritime regulatory infrastructure. The Indian Council for Arbitration has a dedicated platform for registering maritime arbitration. Under the aegis of the Ministry of Ports, Shipping and Waterways and, Gujarat Maritime University (GMU) has developed a resolute platform for maritime dispute resolution referred to as Gujarat International Maritime Arbitration Center (GIMAC).
This article will predominantly emphasize upon developments in the domain of maritime Arbitration and evaluate the prospectus underlined by its growth and the scope to address the challenges that came up during process execution, such as the applicability of arbitration clause in the charter-party agreement to a third party, transfer of arbitration clause through bill of lading and challenges faced by the port authority in case of any dispute.
Keywords: Maritime Arbitration, Charter-party Agreements, Bill of Lading, Liner and Non-Liner Shippers.
