Business on international level is done on trust between two companies. However, companies that deal with manufacturers and other firms across border are familiar with shipping related disputes. Such conflicts usually arise due to the liability for damaged goods and breach of a party.
Many businesses rely on international arbitration when it comes to resolving shipping related disputes. Moreover, here are the top reasons why.
- Speed – Companies prefer if they get the conflict of interests settled as soon as possible in order to avoid further waste of money and time. Arbitration certainly provides them a platform to solve their disputes within a time limit and as quickly as possible. Quick verdict also means that the capital stuck in such agreements will be freed.
- Confidentiality – Information leaks can damage a company’s reputation and business simultaneously. If a firm moves to the local court to resolve conflict, then there might be a chance of information leaks or data getting public. To avoid all these situations, most companies prefer to choose an ICC arbitration lawyer and get the dispute settled confidentially without the threat of information leaks.
- Cost – On international level, firms spend lots of money on their business and shipping of different materials, equipment etc. In addition, if a dispute arises, all this capital is stuck. Furthermore, if one opts for the local court proceedings, they will be paying more on it. To avoid heavy expense on solving the dispute, companies choose arbitration, which is renowned for its cost effectiveness.
Aforementioned are the aspects that attract businesses towards arbitration to resolve their shipping related conflicts with the other party.