An interview with Mike Dunwell of the Baltic Exchange Disputes & Resolutions service
This year alone, the Baltic Exchange Disputes and Resolutions Service has assisted its members in the recovery of over US$1million, owed to members. Mike Dunwell who heads up the Disputes and Resolutions Service explains to the Baltic Briefing how this facility can support members
Could you explain briefly, what the Disputes & Resolutions Service is and how it works?
In a nutshell, the disputes & resolutions service is a complimentary service, run by the Baltic Exchange and is offered only to members. It is designed to recoup money owed to Baltic members, mainly relating to commission in the case of brokers and perhaps freight where owners are concerned or honouring an arbitration award or through any form of malpractice according to the Baltic Code. It’s a great service because it means that if we are successful, the member doesn’t need to seek legal advice which can be costly and time consuming.
A member will come to the Baltic with a complaint, which I will then report to the Baltic’s Membership Council at its monthly meeting. I will then contact the company or individual owing money to the member who typically will be given some time to explain or two weeks to pay up. If I manage to speak to them and I can see that they are making efforts to arrange payment, I may give them some extra time. However, if the money still doesn’t appear, the company name will be posted on the Baltic website, and visible to all members. This system of posting dates back to the trading floor days, whereby the Exchange let its entire membership know if a company had withheld payment to a member – obviously these days it’s done digitally via the website and so reaches a much greater number of members.
What is your role within the Service?
I deal purely with disputes and resolutions- a member will approach me directly with a complaint. Initially this will involve contacting both parties for information and establishing the facts of the case and if I know the company owing money, I might make a quick phone call to them and request that they pay; often the threat of posting on the Baltic Exchange website is enough to encourage companies to pay up. If they continue to ignore our request then we will follow the procedure to post the complaint on the Baltic Exchange website- but this is always as a last resort.
I am pleased to report that this year has been a good year; so far, we have helped recover just over US$1million owed to Baltic members.
How much has been recovered?
I am pleased to report that this year has been a good year; so far, we have helped recover just over US$1million owed to Baltic members.
What is your background in the shipping industry and how did you get involved with this service?
I worked for over 40 years as a dry cargo broker and I have been a member of the Baltic Exchange since 1978. I joined the Baltic Exchange two and a half years ago as a member of the freight market reporting team and eventually this role evolved in to managing the disputes and resolutions service. The job requires a strong understanding of the industry and how it works and also a wide network of contacts.
What has been your most memorable case so far?
We had a case recently where a Baltic member and panellist – a broker – was owed US$12,000 in commission from an owner for more than a year and the owner was refusing to pay up. The broker was in a slightly awkward position because they didn’t want to upset the owner and despite their requests for payment, the company was ignoring them. I sent the owner a message saying that we understand that they owed one of our members commission and I explained to them the disputes and resolutions process and the posting system. Fortunately, they paid within two weeks; the threat of posting does hold some weight within the shipping community.
My best case involved an elderly Baltic member, close to retirement, whom I have known for many years. He was owed close to US$100,000 in commission. The company owing money wasn’t a Baltic member but nonetheless, I had a contact there and I spoke to them to assess the situation. The company owing money didn’t want the Baltic to be involved and within two weeks they had paid the best part of the commission owed, which was around US$60,000 and eventually the company paid the full agreed balance. Shortly afterwards, the member retired so this case was very rewarding for me.
For more information about the Baltic Exchange disputes and resolutions service please see: