The Role of Arbitration Clauses in Resolving Disputes in Carriage of Goods Across International Borders

Abstract

For the past decade or so, the uniformity of the law of international carriage of goods by sea has increasingly been undermined by the promulgation of hybrid carriage regimes by several maritime jurisdictions which depart from the established international uniform rules. This is one of the exemplifications of the increasing disregard for international maritime law propelled by accelerating domestic unilateralism. The aim of this article is to bring to the fore the role of arbitration in resolving disputes between parties in the international carriage of goods in juxtaposition with litigation, and why it is favoured among other alternative dispute resolution mechanisms. This paper argues that in the absence of a uniform set of laws regulating commercial disputes at sea, the inclusion of arbitration clauses in international carriage of goods is the most effective means of resolving disputes among parties. Not only does arbitration save time and cost, but also awards can be enforced on multiple jurisdictions. Keywords: Arbitration, Arbitration Clauses, Dispute solving, International trade DOI : 10.7176/JLPG/83-04 Publication date :March 31 st 2019