Haiwen secures landmark victory in China's first foreign maritime ad hoc arbitration

In this groundbreaking arbitration, the shipowner engaged in a voyage charterparty, chartering the vessel to the charterer for the transport of a coal shipment from an Indonesian loading port to a Chinese discharge port. However, upon the completion of the voyage, the charterer defaulted on freight and demurrage payments, igniting a contentious dispute between the parties.

In a strategic move, both parties agreed to designate Shanghai as the arbitration venue, applying English law and the Hong Kong Maritime Arbitration Group Rules (HKMAG Rules), and permitting bilingual arbitration proceedings in Chinese and English.

The commencement of the ad hoc arbitration on 19 August 2024, marked a pivotal moment. Haiwen, representing the shipowner, served the arbitration notice on the charterer, appointing a distinguished mainland maritime law expert as the arbitrator, officially commencing the ad hoc arbitration process. Responding on behalf of the charterer, a prominent mainland maritime law firm appointed a well-known Hong Kong maritime lawyer as the arbitrator. With both the shipowner and charterer being Hong Kong-incorporated entities, this case holds the distinction of being China's first foreign maritime ad hoc arbitration case.

The combined virtual and physical court hearing on 30 September 2024, at Shanghai's North Bund in the Hongkou District, culminated in a momentous ruling on 18 January 2024. The shipowner secured a significant victory as the ad hoc maritime arbitral tribunal, consisting of two arbitrators, ruled in their favour, dismissing all of the charterers' counterclaims.

The case was officially announced as a significant achievement during the North Bund Forum's opening ceremony on 23 October 2024, enhancing the North Bund's reputation in international maritime legal services. On 13 January 2025, the Xinhua News Agency included this case in the "Top Ten Events of the 2024 Shanghai International Shipping Centre", highlighting it as a landmark case that signifies the successful implementation of the ad hoc arbitration system in Shanghai.

In earlier media engagements, Edward Liu, a partner at Haiwen & Partners LLP, emphasised the profound significance of this case, underlining Shanghai's welcoming stance towards global shipping enterprises seeking arbitration. Edward highlighted how this case exemplifies Shanghai's commitment to maritime arbitration innovation, a sentiment applauded by the shipping industry.

Led by Edward Liu and supported by senior associate Vinca Yau and trainee solicitor Thomas Au, the Haiwen team provided comprehensive legal services to the shipowner, demonstrating expertise in legal advice, arbitration document drafting, and bilingual advocacy, showcasing Haiwen's excellence in the maritime arbitration field.

Haiwen excels in maritime arbitration, handling cases from esteemed maritime arbitration hubs worldwide such as Hong Kong, London, Singapore, and beyond. Successfully navigating China's first foreign maritime ad hoc arbitration case in Shanghai reaffirms Haiwen's exceptional capabilities in resolving cross-border maritime disputes. With bilingual proficiency in Chinese and English and a diverse professional background, Haiwen delivers comprehensive maritime legal services to global clients, ensuring the utmost protection of their interests with professionalism and expertise.