The arbitration clause needs to provide for arbitration but, ideally, it should also contain three provisions.
First, the governing law of the contract. This would be the law the arbitrators apply to the dispute.
Second, the forum or seat, which could be any of the main arbitration centers, such as New York, Singapore, Beijing or London.
Thirdly, a set of procedural rules.
You can even have a hybrid. For example, London arbitration with New York law or Singapore arbitration with English law. But problems can occur with these hybrids.
As to the law, English law is very used and friendly. For example, to evidence a fixture, the recap only is fine.
The choice of seat is very important. If you don’t provide which forum is in charge, no set of arbitrators can claim jurisdiction.
Lastly, it’s best to agree a set of procedural rules. Many jurisdictions have a statute or some form of codified provisions regarding arbitration. But one size does not generally fit all and so specialised institutions have evolved their own terms. There are, for example, the terms of the institutions such as the ICC and the LCIA.
As we are talking about London maritime arbitration, it is probably best to use the specialist, the ad hoc procedural rules from the LMAA.
BIMCO, the industry body, has a series of recommended clauses and standard forms. They are huge supporters of London arbitration and it is recommended to look at their forms for the best examples of arbitration clauses, especially as they are continually reviewed and updated as the law evolves.
George Eddings, Full time maritime arbitrator and Aspiring Full Member of the LMAA, London (UK)
E: george.eddings@protonmail.com
https://gmteddings.com
https://www.linkedin.com/in/george-eddings-71037917/
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