How should parties attempt to settle such disputes? On 20 September, the Singapore Shipping Association (SSA) hosted a Maritime Conversations@SSA talk, which dives into the topic of maritime disputes and explores solutions. This session provided 49 number of attendees with essential insights into maritime dispute resolution and ship arrests, two critical areas of focus for industry professionals.
This talk was conducted by Dedi Affandi Ahmad, a Shipping & International Trade partner at Rajah & Tann. With extensive experience, Dedi taught the previous Shipping Disputes course at Singapore Shipping Association. He sits on the Advisory Board of the Centre for Maritime Law at the National University of Singapore where he is also an Adjunct Fellow.
Arbitration
When unable to come to a peaceful resolution, parties may consider taking the matter to court. However, the litigation process can be tedious and lengthy process, extending over months or even years. Instead, arbitration offers a more efficient and confidential alternative.
According to Dedi, there are several benefits of resolving disputes through arbitration, including procedural flexibility, ease of enforcement and confidentiality and neutrality. For example, in a dispute between a Chinese shipping company and an Indonesian vessel owner, they may choose to conduct their arbitration in Singapore, a neutral party that would represent the interest of both parties.
Ship Arrests
The ship can be retained as security for arbitration proceedings that have been commenced. This provision ensures that the claimant’s potential award is safeguarded by the security provided through the arrest of the vessel. Not only are shipowners compelled to resolve disputes, they are also unable to sell or move the ship before the conclusion of the arbitration process. Dedi provided detailed insights into legal frameworks surrounding ship arrests, appraisement and sale of vessels under arrest, and handling of cargo while a ship is under arrest.
For the claimant in a ship arrest, it is important to track claims against the vessel, priorities of claims and whether an arrest should be made as a first or last resort.
In an industry where disputes can quickly escalate across jurisdictions, understanding the intricacies of cross-jurisdictional disputes and arbitration is crucial for shipping professionals. Understanding these processes not only minimize risks, but also ensures that companies and shipowners can resolve conflicts effectively.
Maritime Conversations@SSA is a series of talks (Hybrid) aimed at providing our members with valuable insights and knowledge on various topics such as legal, sustainability, digitalization and more.
To stay updated on upcoming webinars and events, check out our website here.