The London Maritime Arbitrators Association (LMAA) has just released its 2017 statistics.
The LMAA only compiles those arbitrations in which a Full and Aspiring Full Members of the LMAA are appointed as arbitrators. It does not include arbitrations where Supporting Members are appointed as arbitrators, or those arbitrations all over the world in which the parties chose to make use of the LMAA Terms.
Therefore although not offering a complete full picture of all the arbitrations commenced under the LMAA Terms, it does offer a fair view which can be taken into account so as to value the weight of the LMAA in the maritime arbitration market.
The figures are outstanding. The LMAA has had in 2017 over 2500 appointments. Also, some 500 arbitral awards have been published in 2017. No other institution or association comes even close to match such strong figures.
If we look at the ten year picture, 2017 has been below the average of the results obtained in the past ten years, where 2002 was the poorest year with 2219 appointments and 2009 the strongest with 4445 appointments.
The effect of Brexit does not seem to have had an impact on the LMAA’s 2017 results or at least it is not possible to extract any such effect from these figures. The Brexit referendum took place in June 2016 and therefore only 18 months have passed since then. In that period the number of arbitrations diminished a 10,5%, a variation which is insignificant as compared to those taking place between other periods of time.
As a matter of example, a 34% increase took place between 2007 and 2008 or a 21,5% decrease occurred between 2009 and 2010. The fluctuation therefore seems to be normal and in consonance with previous year’s variations.
There is also no evidence suggesting that when the LMAA arbitrations have decreased, there has been an increase somewhere else in the world, which could lead to say that those “lost” arbitrations have been “gained” by other places. All of which suggests that the LMAA and the London arbitration market continues to lead far and away from any other place and that London cannot be other than optimistic in the years to come.
The complete LMAA 2017 statistics can be found at the LMAA website here: http://www.lmaa.london/news-article.aspx?pkNewsEventID=208da443-7800-4720-84b3-7f4f3f5fc9ce