Why Arbitration? Why Not?

In negotiating and drafting agreements for maritime and energy transactions, the parties inevitably consider whether and, if so, how to define the process for dispute resolution. With respect to "blue-water" charterparties, arbitration is fairly common. However, in other agreements, such as master service, supply, purchase and sale, bunkering, towing, stevedoring, and terminal agreements, among many others, it appears the parties more often agree to litigation in a particular court or city or the contracts are silent with respect to dispute resolution.

So, why aren't parties to other maritime and energy-related transactions considering arbitration? The purpose of this article is to examine the most common arguments for and against arbitration as well as weigh the pros and cons.