In arbitration proceedings the arbitral tribunal decides definitively and in a binding manner on a dispute. With conciliation, the conciliator, who has no power to make decisions, tries to bring about an amicable agreement with which both parties can be satisfied. If the attempt fails, the conciliation procedure stops without a result having been produced and the claimant has to decide whether or not to commence fresh proceedings (depending upon the agreement either before an arbitral tribunal or a state court). The GMAA offers Rules for both types of proceedings. In practice, however, the GMAA arbitration proceedings are almost always chosen because in Germany, in contrast to Common Law countries – in particular England and the USA, an attempt at conciliation forms part of the arbitration proceedings (§ 13 Arbitration Rules).

In practice what is meant in terms of content is the same, namely the settlement of a dispute through an amicable agreement via the use of a conciliator or mediator. Mediation of Anglo-American origin mostly provides for the mediator to conduct confidential individual talks with the respective parties. It is expected that this results in the mediator learning confidential information which he needs for the settlement and which would not be stated in the presence of the opposing party (shuttle diplomacy). This type of mediation does not meet the requirements of legal proceedings as a hearing in accordance with the law is not provided for. This is why the GMAA suggests an attempt at mediation/conciliation in arbitration proceedings as is the case in German civil procedure law (§ 13 Arbitration Rules). In this way the arbitrators also operate as mediators/conciliators.

Mostly the parties to GMAA arbitration proceedings are in dispute over claims arising from a charter party, for example entries in the final hire statement. However, cargo claims under bills of lading, volume contracts, ship sales and ship construction and repair contracts are often subject to GMAA arbitration. In general in every contract it is possible to agree upon the competence of a GMAA arbitral tribunal.

The arbitration proceedings commence with the appointment of an arbitrator by the claimant (see § 4 Arbitration Rules), providing the respondent with the corresponding information and the request to the respondent to appoint its choice of arbitrator.

There is no obligation to instruct a lawyer. Each party can represent itself or be represented by a third party (§ 11 para 6 Arbitration Rules). In more complicated cases it may be wise to instruct a lawyer, however.

The arbitral tribunal has several possibilities to induce non-performing parties to cooperate or to do without their cooperation (see for example § 10 para 6 Arbitration Rules). If a respondent does not appoint its choice of arbitrator, a replacement appointment is carried out by the Chairman of the Board of the GMAA (§ 4 para 3 Arbitration Rules). If the respondent does not submit its statement of defence within time or if the respondent does not appear at a scheduled hearing, an award can be made swiftly despite this.

No. There is no appeal against the arbitration proceedings. Only if the arbitrator is alleged to have committed gross procedural breaches do the parties have the right to apply for the repeal of the arbitral award by a state court.

This is decided by the arbitral tribunal (§ 14 para 4 h) Arbitration Rules). Generally, the arbitral tribunal decides that the losing party bears the costs of the proceedings (§ 7 para 4 Arbitration Rules). If a party only loses in part, it only has to bear the costs of the corresponding part which is lost. If the proceedings result in a settlement, this normally includes a rule on the apportionment of costs.

No, but due to the fact that the costs under the GMAA Rules on fees depend upon the value of the dispute, small claims have low costs.

Yes, but an attempt at conciliation is then much more difficult because the arbitral tribunal and the parties do not come face-to-face for the hearing.

None. The GMAA does not conduct any arbitration proceedings, it merely makes an effective system for proceedings available, under which the individually appointed arbitrators act autonomously. The GMAA has no permanent structure and no salaried employees. The board and secretariat consist of volunteers who have no influence on particular arbitration proceedings and their outcomes.

Proceedings under the rules of the GMAA only take place if this is agreed upon by the parties. For this it is necessary to adopt an arbitration clause in the underlying agreement. It is also possible to reach such an agreement following conclusion of the underlying agreement – even after having raised the request for arbitration. You can find template arbitration clauses here.