Arbitration
Also known as: arbitration, dispute resolution
A formal dispute resolution process in which a neutral arbitrator renders a binding decision.
In shipping, arbitration is commonly specified in charter parties and contracts to settle disputes privately and efficiently. The parties agree in advance on the rules and venue (for example, London or New York), benefiting from confidentiality and decision-makers with maritime expertise. For a layperson, it means a private judge chosen by the parties decides the dispute, and the decision must be followed.
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