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Singapore Chamber of Maritime Arbitration ("SCMA")

A concise overview of the key procedural features, advantages, disadvantages, and practical considerations involved in arbitrations administered by Singapore Chamber of Maritime Arbitration ("SCMA").

Overview

Overview: advantages and disadvantages

ADVANTAGES DISADVANTAGES 
Specialised in Maritime Disputes. Tailored rules and procedures for shipping and maritime cases. Limited Scope. Mainly suitable for maritime and shipping disputes. Not always considered appropriate for general commercial cases.
Flexible Procedure. Parties can choose their own arbitrators, venue, and have significant autonomy over procedural rules. Less Global Recognition. Compared to institutions like ICC or LCIA, SCMA is less known outside maritime circles.
Cost-Effective. No administration fees; arbitrators are paid directly by the parties. No Institutional Oversight. SCMA does not manage the arbitration process, which may lead to inconsistencies if parties are inexperienced.
Confidentiality. SCMA arbitration proceedings are confidential. Enforcement Challenges. While awards are enforceable under the New York Convention, unfamiliarity in some jurisdictions may cause delays.
Ability to choose the arbitrator(s): The parties may choose arbitrators who have expertise in the subject matter of the relevant dispute and/or who are from neutral jurisdictions.  

Overview: Process

Procedural element Details
Rules
Commencing Proceedings
  • A Notice for Arbitration is served on the other party.
Answer to the Request
  • To be submitted within 14 days of receipt of the Notice.
  • Must contain the information specified in Article 7.
Terms of Reference
  • Parties may agree to any procedural matter subject to the Tribunal's discretion. 
  • The SCMA Rules include a questionnaire in Schedule A directing parties to consider procedural issues and to provide their proposals to the Tribunal.
  • The Tribunal typically calls a case management meeting to set out the procedure. There is no fixed manner in which such meeting must be held.
Constitution of the Tribunal 
  • The SCMA Rules provide for 3 arbitrators to be appointed. 
  • Where 3 arbitrators are to be appointed, both parties will appoint 1 arbitrator and the 2 co-arbitrators may appoint a third arbitrator. 
  • If a party refuses to engage in the appointment process, the other party may apply to the Chairperson of the SCMA to appoint the remaining arbitrator(s).
Procedural measures
  • The Tribunal shall have the widest discretion in all matters allowed by the seat of the arbitration while having regard to any agreement between the parties.
Witness evidence 
  • The Rules provide that witness statements are to be presented in written form, either as signed statements or statements made under oath or affirmation, subject to Tribunal directions.
Fees & costs
  • Parties are jointly and severally liable for the fees and expenses of the Tribunal. The Tribunal operates on an hourly rate basis.
  • The Rules provide that the Tribunal must specify the costs of the arbitration and the proportion in which the parties shall bear the costs.

Expedited arbitrations

Where the value of claim does not exceed USD$300,000 (or the parties agree in writing), the arbitration will be conducted in accordance with SCMA's expedited procedure. 

Under the expedited procedure, there will be no oral hearing unless required by the Tribunal. Similarly, no party may seek an order for the production of evidence or particulars unless the Tribunal requires the production of such documents.

Constitution of the tribunal

If the parties have agreed to adopt the Rules, 3 arbitrators will be appointed.

If the parties have agreed to use a sole arbitrator, but not the appointee, the Chairperson of the SCMA may do so upon application of the parties. 

If 3 arbitrators are to be appointed, both parties will appoint 1 arbitrator, and the two appointees will together constitute the Tribunal but may appoint a third at any point thereafter. 

Note: Emergency Arbitrators

SCMA does not allow the appointment of Emergency Arbitrators.

Arbitrator conflicts / disclosure of interest

SCMA requires disclosure of all facts and circumstances that may give rise to justifiable doubts as to an arbitrator's impartiality or independence, including:  

1. Past or present personal or business relationships, whether direct or indirect, with any party of important witness to the arbitration. 

2. The extent of any prior knowledge of the dispute.

Note:

The 2024 IBA Guidelines on Conflicts of Interest in International Arbitration are also applied in practice. A link to those IBA Guidelines can be accessed here.

Consolidation

Consolidation of multiple arbitrations into one is not provided for expressly.

However, if 2 or more arbitrations appear to raise common issues of fact or law, the Tribunal may direct that they be heard concurrently or consecutively.

Pleadings or memorial approach?

The Rules do not mandate one approach over the other.

Pleadings-style is slightly more common in SCMA arbitrations, although this largely depends on the nature and complexity of the technical issues in dispute.

Summary judgment

There are no express provisions in the SCMA Rules dealing with applications for summary judgment. 

However, the questionnaire to be completed by the parties following service of the Statement of Reply envisages that preliminary determination of issues may be appropriate if time and costs savings are likely to be achieved.

Security for costs

A party may apply for security for costs, but the Rules do not set out a test that the Tribunal is bound to apply.

Additionally, the Tribunal is entitled to reasonable security for the costs of the arbitration pursuant to Rule 41. 

Disclosure of documents

The Rules do not provide for the mandatory disclosure of documents. The wide case management powers under Article 28 enable the Tribunal to order any party to produce documents which the Tribunal determines to be relevant.

Hearings

The Tribunal has the discretion to decide whether a hearing is necessary or if the matter can be resolved on a documents-only basis. However, if any party requests a hearing, the Tribunal must hold one. Hearings may be conducted in person, by telephone, or via video conference, depending on what the Tribunal deems appropriate.   

Note: The Tribunal can only dispense with a Final Hearing if the parties do not object.

Role in scrutiny of arbitral awards

SCMA will not necessarily review awards unless requested by the parties or the Tribunal. 

Appeals

The SCMA Rules do not expressly preclude appeals against Final Awards, but if the arbitration is governed by the IAA and the Model Law, appeals are not possible.

Further information

    Model clause
    Any and all disputes arising out of or in connection with this contract, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration seated in Singapore in accordance with the Arbitration Rules of the Singapore Chamber of Maritime Arbitration ("SCMA Rules") current at the commencement of the arbitration, which rules are deemed to be incorporated by reference in this clause.

    This arbitration clause shall be governed by the laws of [Singapore].

If you would like any further information about SCMA arbitrations, please contact Andrew Robinson (arobinson@dacbeachcroft.com).     

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By clicking on a country or an arbitral body that is highlighted on the map, you can read more about the intricacies of arbitration in those areas. The map will be useful for people who are negotiating contracts and those who have disputes across the world. The map's content was written by lawyers from across DACB's international network of offices as well as friends from firms in other jurisdictions, demonstrating our global arbitration expertise. 

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