Shipping Disputes – How Arbitration is Helpful in Resolving Them?

Shipping is an important part of any business or industry, as everyone depends on others to continue with their daily operations. Carriage of goods by sea, air or land is an aspect that most companies are familiar with. However, there is always a chance that goods may be lost, damaged or deteriorated.

For a business, it can be a troubling situation, which can affect their functions. It can lead to disputes between two companies – the client and the shipper, over the liability for damaged goods.

The breach of a charter party is another factor that can lead to conflicts between shippers and clients. One party expects damages for such situations. Many companies go with proper contracts of carriage for the transfer of goods. These contracts define the rights and liabilities that both parties agreed upon in terms. Still, any compromise with the quality and quantity of the goods in transit can lead to conflicts.

Now, such disputes can be resolved in the local courts, which can turn out to be a long procedure. Therefore, companies usually look for a more convenient process. This is where international arbitration comes in to help both parties.

International Arbitration allows both private parties to settle their conflicts of interests outside of the local court. It is a more convenient method that produces verdicts quicker and in a simpler way. It also allows more control to both parties over the process.

Arbitration is also used when two companies (client and the manufacturer) get at odds over the liability for damaged goods. However, arbitration is a swift and fitting method for settling conflicts, regardless of the type of dispute.


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