Commodities arbitration

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Commodities—types of contract and disputes

This Practice Note provides an introduction to the types of contracts and disputes which commonly arise in commodities trades as well as an introduction to the various arbitral bodies which handle such disputes. In particular, the Practice Note: considers the distinction between hard and soft commodities; provides an overview of contracts of affreightment and charterparties; discusses cost, insurance and freight (CIF) and free on board (FOB) contracts; and, refers to quality disputes, documentary compliance disputes, time of shipment disputes and force majeure disputes. This topic may be referred to as international commodity trading contracts and disputes.

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Latest Arbitration News

CICC announces revised Arbitration Law took effect 1 March 2026

The China International Commercial Court (CICC) has announced that China’s newly revised Arbitration Law, which replaces the 1995 Arbitration Law, took effect on 1 March 2026. The amendment expands provisions on international arbitration and introduces a ‘place of arbitration’ system, under which the place of arbitration determines the applicable procedural law and the court with jurisdiction unless the parties agree otherwise. In certain foreign-related maritime disputes and disputes involving enterprises in designated free trade zones, parties may choose to establish ad hoc arbitral tribunals composed of qualified individuals, subject to filing requirements. The revised law clarifies that Chinese arbitration institutions and tribunals may handle international investment arbitration cases in accordance with relevant treaties and aligns provisions on the recognition and enforcement of awards with the Civil Procedure Law. It also revises governance requirements for arbitration institutions, enhances arbitrator qualification and disclosure obligations and formally recognises online arbitration. Procedural changes include expanded mechanisms for confirming the existence of arbitration agreements and a reduction in the time limit for applying to set aside an award from six months to three months, while the law further provides for judicial support for preservation measures prior to the commencement of arbitration and permits tribunals to request assistance in evidence collection.

AIAC announces launch of the AIAC Court of Arbitration

The Asian International Arbitration Centre (AIAC) has announced the launch of the AIAC Court of Arbitration and confirmed the appointment of its president and members. The newly established court is intended to further AIAC’s mandate of providing neutral, independent and efficient alternative dispute resolution (ADR) services. It is composed of a panel with domestic and international ADR experience, whose expertise is expected to strengthen AIAC’s institutional standing and support the effective functioning of the court.

Drawing the line—court review of arbitral institutions’ administrative decisions in Brazil (Vale v B3 & others)

Arbitration analysis: Reversing a first-instance judgment that had dismissed the claim for lack of jurisdiction and legal standing, the São Paulo Court of Appeals held that Brazilian courts may review administrative decisions rendered by arbitral institutions prior to the constitution of the arbitral tribunal. The dispute concerned a decision by the President of the Market Arbitration Chamber (CAM) applying Article 3.6 of its Rules to appoint all three arbitrators and to disregard respondent Vale S.A.’s prior appointment of a co-arbitrator. The court held that the provision presupposes both a plurality of parties and an actual ‘absence of consensus’, which was not present in the case at hand, as the multiparty claimants acted jointly and with convergent interests up to that stage of the proceedings. It further held that the statutory right of each party to appoint a co-arbitrator under the Brazilian Arbitration Act cannot be displaced by institutional discretion in such circumstances. The decision reinforces the judicial control over institutional acts that affect fundamental procedural rights in arbitration and clarifies the São Paulo Court of Appeal’s stance on the distinction between jurisdictional and administrative acts in arbitration. Written by Renato Stephan Grion, partner at Pinheiro Neto Advogados, and Thiago Del Pozzo Zanelato, senior associate at Pinheiro Neto Advogados.

CJEU Advocate General rules EU Russia sanctions form part of Union public policy

The Court of Justice of the European Union (CJEU) Advocate General Andrea Biondi has delivered an opinion in Case C-802/24 Reibel stating that the prohibition on satisfying claims by Russian entities under Council Regulation 833/2014 forms part of European Union public policy. The opinion, delivered on 26 February 2026, establishes that national courts must ensure arbitration awards comply with this prohibition and set aside awards that breach it, acting of their own motion if necessary. The case arose from a 2015 contract between a Belgian company and Russian entity where EU restrictive measures prevented performance, leading to a 2021 Swedish arbitration award ordering repayment of advance payments. Advocate General Biondi concluded that while arbitration proceedings concerning such claims may proceed, tribunals cannot provide favourable responses to Russian entity claims affected by restrictive measures. The opinion emphasises that arbitration tribunals remain bound by EU law and national courts must exercise effective judicial review to prevent circumvention of sanctions prohibitions.

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