Ad Hoc v International Arbitration

Introduction

International arbitration remains the preferred dispute resolution mechanism for crossborder disputes for major international corporations. In industries such as shipping, energy, oil and gas and insurance, international arbitration is the most commonly used dispute resolution mechanism.

The immediate benefits to international arbitration have been cited as enforceability of arbitral awards, the flexibility of the procedure and the depth of expertise of arbitrators as the major advantages.

From research undertaken on this matter, the organisations who prefer ad hoc arbitrations are corporations with a gross annual turn over of more than $50 billion. Such organisations are likely to have large, sophisticated in-house legal departments with experience of managing arbitration proceedings.