GAFTA Arbitration: What It Is and Why You Need to Know
In today’s business world, disputes are bound to arise. When they do, both parties must find an equitable resolution that is fair and just. In order to achieve this, businesses often turn to arbitration or mediation services. Arbitration and mediation are both dispute resolution processes that operate under the same principle: Rather than going to court, both parties agree on a neutral third party who will hear their case and make a final decision regarding their dispute with one another. The main difference between arbitration and mediation is that in an arbitration proceeding, the arbitrator acts as an intermediary for both sides of the argument. An arbitration hearing has two primary roles: fact-finder and judge. Both sides meet with the arbitrator separately first so that they can state their case without fear of retaliation from the other side. Once this is done, the two sides meet together again so that the arbitrator can listen to both sides of the story and come up with a fair resolution for them both.
Arbitration is a legal process whereby a dispute between two parties is resolved by a third party called an arbitrator, who issues a decision based on the facts of the case. Arbitration is often used in commercial transactions as a means of resolving disputes outside the court system and is binding on the parties. Arbitration is different from litigation in that the parties do not make their case to a jury or judge but to an arbitrator or arbitrators, who have authority to render a final decision that is binding on the parties. In arbitration, the decision-maker is generally a lawyer. Arbitrators are usually paid on a per diem basis like judges. Arbitration is usually less expensive than litigation.
In the highly competitive world of shipping, disputes are bound to arise. These disputes are often over issues like payment of bills or the quality of goods. If things come to a head and both parties can’t agree on a solution, it may be difficult for both sides to come to a resolution. While some parties may choose to go to court, others may wish to try and work out their differences through a less formal means of arbitration. With GAFTA arbitration, all parties agree to abide by the arbitrator’s decision and work on resolution of their dispute in a swift and efficient manner. Due to the industry that GAFTA serves, its arbitration service is highly convenient for shippers since the arbitrators are based in London, Paris, Singapore, and Hong Kong. This allows shippers based anywhere in the world to use this service without having to travel to a different country.
If an impasse arises in the contract and both parties cannot come to an agreement, either party can request that the dispute be referred to GAFTA arbitration. The arbitration will take place in London, Paris, Singapore, or Hong Kong. GAFTA Rules of Arbitration and Procedures are followed by arbitrators at the above centres. The arbitration is conducted in accordance with the Model Law on Commercial Arbitration as adopted by the United Nations Commission on International Trade Law (UNCITRAL). The procedures for the conduct of the arbitration are defined in the GAFTA Arbitration Rules and Procedures.
GAFTA Arbitration is an online service that can be used by any member of the general public. It is an important service for all businesses that rely on shipping goods via sea since it is the main shipping association in the world. GAFTA Arbitration is an online service that can be used by any member of the general public. It is an important service for all businesses that rely on shipping goods via sea since it is the main shipping association in the world. Regardless of the value of the dispute, GAFTA Arbitration can be used by all. This is beneficial because smaller disputes may be resolved quickly and efficiently without having to go through all the red tape of the legal system.
Mediation is an alternative dispute resolution method where a neutral third party (the mediator) facilitates communication between two parties (the disputants). The aim of mediation is to assist the parties to reach an agreement that resolves the dispute between them. Mediation can be undertaken informally, without the involvement of a third-party mediator or formally, with the help of a court-appointed mediator. There are many advantages of mediation over litigation. It is less expensive, faster and less adversarial. The parties control the course of the mediation. It can also be more flexible than arbitration, since it is not bound by rules of procedure or evidence, and can take place anywhere the parties agree.
Despite their differences, arbitration and mediation both have the same goal: reaching a resolution for the parties involved in a dispute that is both swift and fair. Both arbitration and mediation are great alternatives to litigation that are often quicker and less expensive, and often allow the parties to maintain a more level playing field. With GAFTA Arbitration, parties can resolve disputes quickly and efficiently without having to go through all the red tape of the legal system.
