An aerial view of central Shanghai along the Huangpu River. [Photo/Shanghai Observer]

Two companies registered in Shanghai have recently opted to conduct arbitration proceedings in the city to swiftly resolve their disputes, which arose from the execution of international maritime crew management service contracts.

In accordance with international maritime dispute resolution practices and interim arbitration regulations implemented by Shanghai, the two entities have mutually agreed to go through arbitration proceedings in Shanghai. This case marks the first instance of a foreign-related maritime interim arbitration case in China.

Following the dispute, the two companies reached an agreement in choosing Shanghai as the arbitration venue and the North Bund in Hongkou district as the hearing location. They independently outlined specific arbitration procedures and jointly selected an expert with high influence in the international shipping sector to serve as the arbitrator. Subsequently, one party submitted an arbitration application, leading to the formation of an arbitration tribunal. Following a court hearing as per the agreed arbitration procedures, a final ruling legally binding both parties was issued.

In December 2023, the Shanghai Municipal People's Congress Standing Committee approved the "Regulations on Promoting the Construction of the Shanghai International Commercial Arbitration Center", pioneering arbitration rules that are in line with international norms.

In June, the Shanghai Judicial Bureau established regulations concerning the scope of interim arbitration, selection of arbitrators, arbitration rules, procedural progress, and safeguards. This provides institutional support and policy guidance for domestic and foreign entities opting for interim arbitration in Shanghai, while also ensuring the operational and predictable nature of interim arbitration.

In recent years, the North Bund has expedited the construction of a high-end core area for shipping services. It has also hosted the North Bund International Shipping Forum on Judiciary and Arbitration, joined the Shanghai Shipping Legal Community, and established the North Bund Shipping Dispute Prevention and Resolution Center.

Source: Jiefang Daily