An Arbitration Clause is a provision commonly included in international shipping or trade contracts that requires parties to resolve disputes through arbitration instead of litigation. This clause helps resolve conflicts related to customs issues, transportation agreements, or contractual obligations by avoiding lengthy court proceedings.
Arbitration clauses are often included in contracts covering:
- International sales of goods
- Freight forwarding and transportation services
- Customs brokerage agreements
- Charter party agreements
- Incoterms-based sales contracts
Most arbitration clauses specify the arbitration body (e.g., ICC, LCIA, SIAC, or UNCITRAL), the seat of arbitration, and the governing law.
