The Singapore Chamber of Maritime Arbitration (SCMA) has credited enhanced technology and outreach efforts beyond Singapore for maintaining a healthy volume of maritime arbitration cases in Singapore during 2020.

SCMA said that the number of reported reference cases last year grew by 5% to 43 cases, which it deemed a good achievement given the challenges presented by the coronavirus.

SCMA chairman Justice Chao Hick Tin said the organisation adapted well to the challenges brought on by the Covid-19 pandemic. Photo: SCMA

The combined value of these cases was $49.3m, with individual claim amounts averaging $1.23m.

Charterparty disputes accounted for 65.1% of the disputes, followed by bunkering disputes at 11.6%, while ship sales and newbuilding disputes came in at 9.3% and commercial sales involving cargoes formed 7% of the disputes heard. Other unspecified disputes rounded up the remaining 7%.

The chamber, a relative newcomer on the global newcomer on the arbitration scene, said that actively and creatively using new digital technologies and media platforms allowed it to overcome the severe disruptions caused by the pandemic.

Adapting to 'new normal'

“As the year progressed, it became clear that Covid-19 was a fast-moving crisis impacting populations globally, many countries implemented social distancing restrictions and lockdowns, bringing about a 'new normal' to all. Along with all other institutions, SCMA has adapted to this new normal,” SCMA chairman Justice Chao Hick Tin said.

Last year also saw changes on the executive front at SCMA. In March dry-bulk veteran Punit Oza was appointed as its new executive director.

Oza, who at the time of his appointment said he wanted to “try to bring some visibility and profiling for SCMA going forward”, was tasked with leading a nearly all-new secretariat team.

The new executive team immediately launched an initiative to position Singapore as the main arbitration centre for Asia and began conducting outreaches to India, China and Association of Southeast Asian Nations countries.

SCMA executive director Punit Oza launched a regional outreach during 2020. Photo: Punit Oza

While SCMA has always had very close relationships with other arbitral institutions and industry bodies, it began formalising a some to create institutional links.

Forging links

A memorandum of understanding (MOU) was signed with the Guangzhou Arbitration Commission to promote arbitration across both the centres, including enabling them to tap into the arbitrators on each other’s panels.

Another MOU with the Institute of Chartered Shipbrokers (Singapore Branch) included clear goals such as holding of regular joint events and cross-representation across the bodies. A similar arrangement for cross-representation was also put in place with the Singapore Shipping Association.

In July, it launched a local users council comprising shipowners, charterers, shipbrokers, offshore marine services companies, underwriters and protection and indemnity clubs.

The users council is described as a vital industry feedback and discussion forum for SCMA.

“All our efforts have been clear and focused resulting in significant value addition for SCMA and its members. Currently, we are in the process of formalising agreements with other industry bodies with a view to add value to our members and the communities that we serve,” Chao said.

SCMA was established in 2004 under the Singapore International Arbitration Centre, but moved to function independently in 2009, when it was revamped into a less structured, more user-friendly entity.