By Wasana Nadeeshani Sellahewa
Singapore (Commonwealth Union)_ The SCMA establishes a framework for maritime arbitration that is adapted precisely to the demands of the maritime community. Since its start in 2009, our users have come from all walks of life in the nautical industry. Because all segments of the marine community use SCMA, all sectors are treated equally.
What characteristics distinguish a world-class marine hub? A well-managed port in a strategic location can only thrive if it is supported by a thriving ecosystem, which for Singapore means a marketplace of shipping companies and firms that covers all aspects of maritime services, from shipbroking to marine insurance, ship financing, and maritime law and arbitration. In an uncertain world, there has never been a greater need for such assistance. For example, in the early stages of the pandemic in 2020, there was an upsurge in demand for arbitration. According to John Sze, Deputy Managing Partner of legal firm Joseph Tan Jude Benny, this was owing to an increase in force majeure situations, in which unanticipated events resulted in contracts not being completed.
Singapore is a well-established Multinational Maritime Centre, with over 170 international shipping organizations and a wide range of maritime services including marine insurance, ship financing, ship brokerage, maritime law, and ship management. By presenting Singapore as Asia’s center of maritime legal knowledge and conflict resolution, SCMA burnishes a shining reputation with gravitas. It’s moving along nicely. Since its inception, the SCMA has registered around 400 instances. It recorded 37 case references last year, totaling US$163.5 million in claims, more than three times the amount in 2020 (US$49 million).
Nonetheless, the task is far from finished. SCMA Vice-Chair Corina Song traveled to Rio de Janeiro in March 2020 for SCMA’s first attendance at the International Congress of Maritime Arbitrators XXI since the organization was formed in 2009. Until 2009, the SCMA, which was founded in 2004, was a component of the Singapore International Arbitration Centre. Hundreds of maritime arbitrators discuss and exchange opinions on the newest difficulties in the shipping markets and industry at the event, which is held every two or three years.
Ms Song presented a presentation on “Maritime Arbitration in Singapore and Proposed Changes to the International Arbitration Act”, establishing Singapore’s position in the realm of maritime arbitration. She noted that the island country has set its eyes on hosting the event in the future years. Such a move would strengthen Singapore’s rising reputation in the industry, as well as the Republic’s status as an international marine hub. While publicity is vital, it ultimately boils down to the value of Singapore’s marine services.
“Recognition is merely the beginning,” Mr Sze explained. “Maritime services must remain relevant, helpful, and focused on delivering risk, legal, and financial solutions. For support and success, we are all interconnected.”
SCMA is critical to the country’s marine environment because it provides a neutral, cost-effective framework for maritime and international trade arbitration. It is especially important for those who conduct business in Asia, according to Ms Song, who is also a Partner at Allen & Gledhill. This is why, last year, SCMA and the Singapore Institute of Arbitrators collaborated to develop the Maritime Arbitrators Accreditation Course (MAAP). The objective is to teach more local maritime arbitrators, who now account for around one-third of the SCMA panel of arbitrators, as well as Singapore-based attorneys. Ms Song believes that for arbitrators to be effective, they must be knowledgeable not just with the subject matter but also with the culture and language of the region.
Singapore is well-positioned to maintain its position as a leading international maritime hub by capitalizing on such advantages. For the eighth consecutive year, the country maintained its No. 1 position on the 2021 Xinhua-Baltic International Shipping Centre Development Index with value-added services such as those supplied by SCMA.
