1. What is Maritime Arbitration?
It refers to arbitrations that resolve disputes in maritime, shipbuilding, marine products, fisheries, and related insurance matters between companies related thereto such as maritime transportation, bill of lading, charter, ship collision, general average, marine rescue, and marine insurance and reinsurance cases among others.
What is arbitration?
A system in which the parties in dispute agree to reach the final resolution of their dispute through arbitrators' decision instead of judicial court ruling.
2. Maritime Disputes that can be resolved through Maritime Arbitration
- 1. Marine incident (maritime transportation, ship chartering, marine insurance, ship collision, general average, marine rescue, marine pollution, and compulsory execution over ships, etc.)
- 2. Disputes in fishing and fisheries industry
- 3. Shipbuilding, repair and offshore platform
- 4. Disputes in port logistics industry (ship management, ship refueling, and supply of articles for ship, etc.)
- 5. Marine leisure sports such as water surface leisure activities, etc.
- 6. Disputes related to maritime environment
3. Characteristics and Advantages of Maritime Arbitration
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Expertise
Decisions by arbitrators with expert knowledge in maritime sectors
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Efficiency
Single-level trial system to save money and time
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Binding Effect
Same effect as judicial court's final ruling
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International Effect
International effect under the New York Convention
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Confidentiality
Non-public hearing to guarantee confidentiality of parties
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Guarantee
Guarantees sufficient opportunities of testimony for parties
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Flexibility
Flexible procedure in line with parties' needs as the governing law, appointment of arbitrators, and hearing place, etc. can be determined through parties' agreement.
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A. Decision by Maritime Experts
Since arbitrators with expertise in the relevant matters issue practical decisions in consideration of special characteristics of maritime sectors, the parties in dispute can expect a reasonable outcome. Also, by appointing experts as the arbitrators, the parties can save the cost and time of appointing a separate appraiser. -
B. Prompt Dispute Resolution
The special characteristics of maritime industry require prompt dispute resolutions. Maritime arbitration promptly handles complex and time-consuming disputes, ensuring quick returns to ordinary business activities. -
C. Korean Organization with Exclusive Responsibility over Maritime Matters
When various maritime disputes occur, the Center helps to save time and cost incurred in using a foreign arbitral institute, prevent any disadvantages and unfavorable situations arising from foreign arbitrators' decisions, and promotes the expectation of prompt and impartial decisions from the exclusive domestic maritime arbitral institute. -
D. Guarantee of Sufficient Opportunity of Testimony and Corporate Confidentiality
Because an expert arbitrator sufficiently listens to the parties' opinions before rendering a decision and the hearings are not disclosed to the public, corporate trade secrets and personal privacy are protected, thereby preventing any fall in corporate and personal credit ratings.
4. Major Characteristics of Asia-Pacific Maritime Arbitration Center Maritime Arbitration Rules
1) Appointment of Arbitrators
| Sole arbitrator |
In principle, the Center's cases are presided by sole arbitrator. However, the parties may agree to appoint three arbitrators. |
|---|---|
| Three arbitrators | Where a dispute is referred to three arbitrators, each party shall appoint one arbitrator each and the appointed two arbitrators shall appoint a third arbitrator by agreement. |
| Challenge of arbitrators | Where there is a ground of suspicion over an arbitrator's impartiality or independence, the party concerned may challenge the arbitrator's appointment. |
2) Expedited Process
Cases that meet certain conditions can take advantage of the expedited process to resolve their disputes more promptly.
Characteristics of Expedited Process
| Classification | Maritime Arbitration Expedited Process |
|---|---|
| Condition | Separate agreement or cases of KRW 50 million or less |
| Appointment of Arbitrator | The Secretariat to appoint one arbitrator in the absence of separate agreement |
| Hearing Method | In principle, one hearing in writing; however, oral hearing is available at a party's request |
| Period for Decision | End date of oral hearing or within 30 days from the date of receipt of written submission |
3) Request for Single Arbitration under Multiple Contracts
The Center may allow the proceedings to proceed under a single arbitration request for claims arising out of multiple contracts if it finds that all of the contracts provide for arbitration under the Rules, the arbitration agreements' compatibility is recognized, and the claims have arisen out of the same transaction or series of transactions.
※ However, where the Secretariat finds that each claim should be heard in separate proceedings, the parties shall submit separate requests.
