The Arbitration Provisions Introduced by the United Nations Research Paper

The Arbitration Provisions Introduced by the United Nations Conventions for Contracts of Carriage by Sea - Research Paper Example The Rotterdam Rules on arbitration emphasizes the right of disputants to choose an arbitration forum that is more convenient to them. At the same time, volume contracts limit these choices and also bind third parties to arbitration agreements between the disputants.3 It therefore appears that the Rotterdam Rules’ arbitration provision contain a number of problems that can be counterproductive to the goal of harmonisation of the international rules applicable to contracts for the carriage of goods by sea. In addition to conflicts contained within the provisions and definition complications, there is also the possibility that arbitration on a single dispute can take place in several places. It is also possible that states adopting the arbitration provisions may not have the maritime expertise to properly resolve maritime disputes or may lack a litigation system capable of supporting arbitration proceedings. This is particularly so since the Rotterdam Rules can apply to contracts for the carriage of goods by means other than by sea, at least partially.4 This research study provides a critical analysis of the arbitration provisions of the Rotterdam Rules and identifies the intended goals of these provisions and the extent to which the Rotterdam Rules have the potential to achieve these goals. Table of Contents Abstract 2 Introduction 4 Research Questions 7 Primary Research Question 8 Secondary Research Questions 8 Statement of the Problem 8 Significance of the Study 9 Delimitation of the Study 10 Research Methodology 10 Overview: International Arbitration of Maritime Contracts 11 The Arbitration Provisions of the Rotterdam Rules 14 Scope and Application of the Rotterdam Rules 14 Arbitration Agreements 17 Volume Contracts 21 Non-Liner Transport 27 The Opt-In Provision 29 Conflict with Other International Instruments 32 Conclusion and Recommendations 34 Conclusion 34 Recommendations 36 Bibligraphy 39 Introduction The Rotterdam Rules introduces into the interna tional regulatory framework a method for regulating â€Å"multimodal transport†.5 In this regard, multimodal transport not only refers to transport by virtue of sea, but also contemplates various other modes of transportation.6 In drafting the Rotterdam Rules the United Nations came to the conclusion that the more than 90 year old Hague Convention was inadequate for responding to the modern intricacies of international cargo transport particularly since today’s transport frequently involves several different modes of transportation. The use of different conventions only created difficulties and conflicts in establishing liability since different rules apply to different transport modes.7 Regardless, the main premise of the Rotterdam Rules is maritime transport and thus, the Rules may be properly defined as a â€Å"maritime plus convention.†8 The Rotterdam Rules introduce arbitration provisions for resolving disputes in specific contracts for carriage by sea situ ations.9 The