 Last month, Hong Kong had its third annual arbitration week, shedding light on its approach to this form of dispute resolution. During the week, Clyde & Co’s Hong Kong Partner Matthew Lam, on the theme of the importance of juridictions with regard to arbitration stated that “Jurisdiction and arbitration clauses are essential in determining where and how a dispute should be resolved. As parties to shipping agreements tend to come from different jurisdictions, such clauses are all the more important for the maritime industry. Maritime industry players are recommended to draft those clauses clearly to reflect their intention and, should a jurisdictional dispute arise, they are recommended to act quickly and be careful not to submit to the wrong jurisdiction.” Asked for his insight, Singapore-based Partner Chris Metcalf, who focuses primarily on dry shipping disputes and marine and offshore insurance-related matters, said “Sanctions are part and parcel of everyday life for those involved in shipping and international trade. It is no longer possible for companies to operate in these sectors without understanding how the global sanctions regimes apply. Systems need to be in place to ensure compliance and to evidence due diligence. It’s a continuously changing area of law, and it can be difficult to keep abreast of the changes, but it’s important to do so, so as not to miss out on opportunities, but also because the consequences of getting it wrong can be severe.” In a look to the future and the changes and regulatory issues he sees affecting the industry going forward, Ik Wei Chong, Partner and Chief Representative in the firm’s Shanghai office claimed that “A number of marine-centric regulations within the ASEAN region will be taking effect next year. These include the Ballast Water Management Convention, the final phrasing-out of single hull tankers, the actual and proposed changes to cabotage regimes in several jurisdictions, which will impact the industry throughout the region.” He went on to say “We have been seeing a substantial increase in requests for legal advice from shipowners, traders, logistics and financial service providers who are concerned in how these regulations will impact their businesses.” |
