Quadrant Chambers

This Practice Note describes the main trade associations which provide arbitration services to the international commodities trades and discusses distinctive features of their arbitration rules. The principal trade associations considered throughout the Practice Note are the Grain and Feed Trade Association (GAFTA) and the Federation of Oils, Seeds and Fats Associations (FOSFA). Other trade associations mentioned include the International Cotton Association (ICA), the London Metal Exchange (LME), the British Coffee Association (BCA) and the Refined Sugar Association (RSA). The Practice Note provides an introduction to commodities arbitration and considers: the role of trade arbitrators, the use of trade representatives instead of lawyers in commodities arbitration, general procedure in commodities arbitration, time limits (or time bar provisions) and appeals against first-tier tribunal decisions to appeal board or appeal committees (the two-tier system). This topic may be referred to as: cross-border commodities contracts arbitration proceedings; commodities dispute resolution; commodities disputes; and, international commodity trade arbitration.

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.