Australian Courts Provide Safe Harbour To Arbitration Agreements In Bills Of Lading

In Carmichael Rail Network Pty Ltd v BBC Chartering Carriers GMBH & Co KG & Anor [2024] HCA 4, the High Court of Australia affirmed a decision of the Full Court of the Federal Court of Australia to dismiss an application to restrain arbitration proceedings conducted in London relating to a dispute arising from a carrier contract.

Background

Carmichael contracted with OneSteel for the manufacture and supply of steel rails. It was agreed that the rails would be transported from OneSteel's facility to the Port of Whyalla and loaded onto a vessel nominated by Carmichael. The rails were then transported by BBC, a carrier booked by Carmichael, from Port Whyalla, South Australia to Port Mackay, Queensland. However, upon arrival, the rails were found to be damaged due to a collapse of the stowed goods, rendering them unusable and subsequently sold as scrap.