London Remains Top Global Hub for Maritime Arbitration Post-Brexit

London continues to maintain its status as the leading global hub for international maritime arbitration, even after the UK’s departure from the European Union. The impact of Brexit on arbitration clauses in contracts governed by English law has been minimal, as EU rules do not apply to the jurisdiction and enforcement of arbitral awards. London’s arbitral awards remain enforceable across the EU under the New York Convention 1958, which is ratified by all EU member states and 133 other countries.

The London Maritime Arbitrators Association (LMAA), established in 1960, plays a crucial role in handling maritime disputes referred to arbitration in London. With a focus on matters such as drilling, heavy lift contracts, offshore construction, vessel building, and offshore decommissioning, the LMAA boasts a diverse range of expertise among its members. The association is actively involved in the offshore support industry, with initiatives like WINDSEACON, a specialized BIMCO contract for offshore windfarm projects.

Arbitrations in London are conducted under the Arbitration Act 1996, with most LMAA members accepting appointments on LMAA terms for maritime cases. These terms govern the arbitration procedure and are periodically updated to ensure efficiency and fairness in resolving disputes. The LMAA’s Terms and Procedures, including the Small Claims Procedure and Intermediate Claims Procedure, provide a structured framework for handling disputes of varying financial values in the maritime sector. In LMAA proceedings, costs typically follow the outcome, with successful parties usually awarded a portion of their claimed costs.

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