Foreign arbitration clauses in voyage charter parties held not to be effective

In brief - Federal Court dismisses application to have award registered and enforced in Australia

In a decision handed down on 29 June 2012 in the case Dampskibsselskabet Norden A/S v Beach Building & Civil Group Pty Ltd 2012 FCA 696, the Federal Court declined to permit an arbitration award made in London to be enforced in Australia because the arbitration agreement was contained in a voyage charter party.

Decision clarifies ambiguous aspect of maritime law

Justice Foster, sitting as a first instance Judge in the Federal Court of Australia, has determined an issue that has been troubling maritime lawyers since the Federal Government introduced amendments to the Carriage of Goods by Sea Act 1991 (COGSA) in 1998. He has declined to permit an arbitration award, made in London, to be enforced in Australia, by reason of the fact that the arbitration agreement was contained in a voyage charter party.