LMAA arbitration – quietly big, on the increase and not just for maritime disputes

Arbitration agreements often incorporate institutional arbitration rules (e.g. London Court of International Arbitration – LCIA, Singapore International Arbitration Centre – SIAC, or International Chamber of Commerce - ICC), which then provide the framework and rules for the arbitration in the event of a dispute and the arbitration is also administered by the institution itself. However, for sectoral disputes, such as maritime disputes, parties may prefer to incorporate sector or trade specific arbitration rules, such as the London Maritime Arbitrators Association (LMAA) Terms and Procedures.

We explore the LMAA and its increased popularity in more detail in this short article.

The LMAA

The LMAA is an association of practising maritime arbitrators founded in 1960. Not being an institution, the LMAA does not administer arbitrations and so no administrative fees are charged. The majority of members are former solicitors or barristers with significant maritime dispute experience. However, there are members who work(ed) in non-legal roles, often within the maritime industry, such as maritime engineers, insurance claim executives and ship managers.

Currently, LMAA arbitration runs under the LMAA Terms 2021, however the LMAA also offers a Small and Intermediate Claims procedure which provides for truncated proceedings in the event the financial thresholds for such procedures are met. The LMAA also offers certain of its members to assist as Mediators and Early Neutral Evaluators. Further, the LMAA has members who accept appointments to sit on ‘Dispute Resolution Boards’ to assist with construction and decommissioning projects.

LMAA arbitration on the increase?

More maritime disputes are referred to arbitration in London than to any other venue worldwide[1]. Although predominantly used for maritime disputes, the LMAA rules can be incorporated for all types of disputes, and it seems its popularity is on the increase.

The LMAA reported an increased caseload for 2022, reporting a total of 1,807 references, marking a 9% increase on 2021’s 1,657 references[2]. As to be expected, the number of published awards also increased, with 93 awards made after a hearing, compared with 77 in 2021[3]. By comparison, the LCIA’s published casework report for 2022 recorded 333 referrals, of which 293 referrals were for arbitration[4], marking a 11% decrease in referrals from the 377 recorded in 2021[5]. The ICC International Court of Arbitration registered 853 new cases in total for 2021[6]. In 2022, the SIAC received 357 new case filings[7].

The LMAA may sometimes go under the radar, but quite clearly it has a name and an offering that is very successful and valued by a great number of users who are attracted by the lack of administration fees, the opportunity to have disputes resolved by shorter procedures for lower value claims, and the offering of experienced and expert LMAA members to act as arbitrators (as well as mediators and evaluators). In the busy and diverse ecosystem of London arbitration, the LMAA is a quiet but conspicuous success.

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[1] About - LMAA
[2] LMAA arbitration: a strong showing in 2022
[3] Ibid.
[4] LCIA News: Annual Report on 2022, Updates on the LCIA Court and “Tylney on Tour” 2023
[5] LCIA Annual Casework Report 2021 - Bird & Bird (twobirds.com)
[6] ICC unveils preliminary dispute resolution figures for 2021 - ICC - International Chamber of Commerce (iccwbo.org)
[7] Press-Release-SIAC-Annual-Report-2022-1.pdf