London arbitration clauses no longer valid

Facts

Dampskibsselskabet Norden A/S, (Owners), entered into a voyage charterparty with Beach Building and Construction Group (of which Bowen Basin Coal Group forms a part), Australia, (the Charterers), dated 6 October 2009 (Charterparty) for the carriage of coal from Australia to China. A dispute arose under the Charterparty in respect of demurrage that had been incurred in the amount of US$824,663.18, (Dispute).

Pursuant to clause 32, the Charterparty was governed by English law and the Dispute was referred to London arbitration and the Owners commenced an arbitration against Beach Building & Civil Group Pty Ltd (BBCG).

At BBCG's request, the arbitrator agreed to determine two preliminary issues which were as follows: