Recently, China’s first foreign-related ad hoc maritime arbitration case was concluded in Shanghai.
This case involved a dispute between two Shanghai companies over a crew management service contract for international routes. After the dispute arose, both parties entered into an arbitration agreement. They agreed to follow international maritime dispute resolution practices. In accordance with the ad hoc arbitration regulations implemented in Shanghai, they agreed to designate Shanghai as the seat of arbitration and Hongkou North Bund as the hearing venue. They independently agreed on the arbitration procedure and jointly appointed an expert with a high reputation and influence in the field of international shipping as the arbitrator. Subsequently, one of the parties submitted an arbitration application. After the arbitral tribunal was formed, the arbitration was conducted according to the agreed procedure, and a final and legally binding award was issued following the hearing.
In December 2023, the “Regulations of Shanghai Municipality on Promoting the Construction of the International Commercial Arbitration Center” (hereinafter the “Regulations”, 上海市推进国际商事仲裁中心建设条例), which was adopted upon deliberation by Shanghai Municipal People’s Congress Standing Committee, officially came into force. The Regulations is the first in China to introduce internationally accepted arbitration system rules, such as the seat of arbitration and ad hoc arbitration.