London Maritime Arbitrators Association (LMAA)

What is LMAA?

London Maritime Arbitrators Association (LMAA), founded in 1960, is dedicated to maritime arbitration. LMAA was established by shipbrokers at the Baltic Exchange who were already acting as arbitrators. Its creation aimed to formalize and professionalize the arbitration process in maritime disputes.

LMAA arbitration facilitates ad hoc arbitrations, and the speedy and economical resolution of maritime disputes while promoting best practices among its members. It offers “fair resolution of maritime and other disputes by an impartial tribunal without unnecessary delay or expense” and is a simple ADR process.

It has over 800 members, including lawyers, marine engineers, and naval architects, who possess specialized expertise in maritime law and related fields.

Unlike traditional arbitration institutions such as the ICC or LCIA, LMAA is not an administering body. It does not supervise arbitrations or charge administrative fees, allowing for a more cost-effective and streamlined process.

2021 LMAA Terms consist of 33 Articles and 6 Schedules. These are the standard arbitration terms used for most cases.

The arbitration process under LMAA terms is designed to be flexible and efficient, allowing parties to tailor their proceedings according to their specific needs while ensuring that maritime law principles are upheld.

Types of Arbitration

LMAA offers following simpler and less expensive procedures to resolve disputes than using the standard 2021 LMAA Terms:

1.???????? Small Claims Procedure (SCP): designed for claims under US$ 100,000, allowing for simplified processes.

2.???????? Fast and Low-Cost Arbitration (FALCA): aimed at providing a quicker resolution for less complex disputes.

3.???????? Intermediate Claims Procedure (ICP): designed for claims which do not exceed US$ 400,000 and for claims that do not fit into the other categories.

Arbitrator Selection: Parties have the freedom to choose their arbitrators, which can include non-LMAA members, provided they are independent. This flexibility allows parties to select arbitrators with relevant expertise for their specific disputes.

Governing Law: Arbitrations under LMAA are typically governed by English law. Many shipping contracts include clauses specifying that disputes will be resolved through LMAA arbitration, reflecting its prominence in the maritime industry.

Arbitration Act 1996: LMAA operates within the framework of the Arbitration Act 1996, which provides a legal basis for arbitration in England and Wales.

Common Types of Disputes

1.???????? Charter Party Disputes: conflicts arising from charter agreements between ship-owners and charterers, including issues related to performance, payment, and breach of contract.

2.???????? Cargo Claims: disputes involving the transportation of goods, such as claims for loss or damage to cargo during transit.

3.???????? Freight and Demurrage Claims: Issues related to the payment of freight charges and claims for demurrage due to delays in loading or unloading cargo.

4.???????? Marine Insurance Claims: Disputes related to marine insurance policies, including claims for coverage and indemnification for losses.

5.???????? General Average Claims: Disputes concerning the principle of general average, where all parties in a maritime venture share the losses incurred during an emergency situation.

6.???????? Shipbuilding and Repair Disputes: issues concerning contracts for the construction or repair of vessels, including delays, defects, and non-compliance with specifications.

7.???????? Collision and Salvage Claims: Conflicts arising from incidents involving ships colliding with each other or with fixed objects, as well as disputes over salvage operations.

8.???????? International Trade Disputes: Broader disputes involving international shipping contracts and trade agreements that may encompass various maritime law aspects.

These types of disputes reflect the diverse nature of issues encountered in the maritime industry, highlighting LMAA's critical role in providing a specialized forum for resolution.

Dominance in Maritime Disputes: LMAA is recognized as a leading provider of maritime dispute resolution services globally. It facilitates approximately 2,000 maritime arbitrations annually in London, making it a leading forum for resolving such disputes. Approximately 75% of all maritime arbitrations occur in London under LMAA rules, underscoring its significance in international shipping.

Stages of LMAA Claims Procedure

1.???????? Notice of Arbitration (with parties’ information, the constitution of an arbitral tribunal, claim amount, and the relief sought)

2.???????? Claim Submission

3.???????? Defence / Written Submission (with Counterclaim, if any)

4.???????? Reply Submission (with Defence to Counterclaim, if any)

5.???????? Reply & Defence to Counterclaim Submission

6.???????? Disclosure and Witness Statement

7.???????? Supplementary Witness Statement

8.???????? Expert Evidence

9.???????? Supplementary Expert Evidence

10.???? Expert's Report

11.???? Additional Expert Reports

12.???? Skeleton Argument (with Statement of Agreed Facts, if any)

13.???? Final Hearing