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The current economic climate continues to affect the transport sector as a whole.

Within aviation, firms are handling a mix of dispute resolution, as the influx of cases brought in the context of the economic downturn make their way through the courts; domestic and international regulatory work; and aviation inusrance, which generates a stream of complex cross-border matters. Domestic aviation projects have been largely dormant over the past year; law firms are increasingly looking internationally, to areas such as Latin America, Africa, Asia and the Middle East, where aviation infrastructure projects are on the increase. The headline news in terms of the legal market was the transfer of Barlow Lyde & Gilbert LLP’s aviation practice to Holman Fenwick Willan LLP.

The recent McNulty report, which called for a significant decrease in costs for the rail industry over the next few years, has opened the door for new initiatives within the rail sector. Domestic rail infrastructure projects have gradually slowed, with the government delaying the planned High Speed 2 rail link between London and Birmingham. However, the package of rail infrastructure improvements announced by the government in November 2011 is likely to boost the sector and increase investment; and international rail projects remain buoyant, with many UK law firms looking further afield for high-value rail development projects. Domestically, many firms are positioning themselves for an increase in franchising-related instructions. At a general industry and rail regulatory level, there has been a strong flow of instructions in technical areas, including inter-industry disputes regarding the charging of staff and adjustments to franchise agreements.

Dispute resolution is a central focus for many shipping firms, although it appears that the sharp increase in instructions that resulted from the credit crisis is starting to diminish, and that the new instructions coming through are tending to be less lucrative. Piracy is a growing area of work; it remains a significant problem off the coast of Somalia and is spreading to pockets of West Africa such as Togo and Benin. Many firms report a recent lull in shipbuilding instructions, although internationally the market is more buoyant. Holman Fenwick Willan LLP and Ince & Co continue to dominate the ranking, leading a market that has seen the establishment of a number of smaller, boutique practices in recent times.

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