During 2017 the Baltic Exchange assisted members with the collection of more than US $1.4m – representing unpaid fees or commissions, arbitration awards and monies owed from other commercial disputes. Many of the cases brought before the dispute resolution team, headed by Mike Dunwell and reporting to the Baltic’s Membership Committee, represent relatively small amounts and often initial intervention by the Baltic is sufficient to encourage prompt payment and settlement of the case.

Ultimately, where a breach in the Baltic’s Code of Conduct has occurred and appropriate reparations have not been made, the threat of being posted by the Baltic as an unfit counterparty in front of the global membership, represents a final, highly undesirable penalty for those unwilling or unable to make good for the losses caused. This indicator can be recognised not just within the shipping community, but also by financial and commodity markets and across due diligence agencies operating across other related sectors.

Already this year, the Baltic has recovered in excess of $1million. This is due in part to wider take-up in the number of cases being reported by P&I clubs and members looking to the Baltic for help but also owing to an increase in resources made available by the Baltic to resolve cases and help to manage the increasing demand.

The dispute resolution service is free of charge to members and in the past we have extended this offering on the same basis to non-members via P&I clubs and legal firms acting for clients. To provide further resources for the service, non-member companies using the service will be charged 15% of the total recovered, capped at £15,000 maximum per case. Our goal is to increase the benefits of being a member, and this fee to non-members will enable the Baltic to pursue more cases and give better support to members seeking help while still providing a much relied on service to the industry at large.

Globally, membership numbers 650 companies and we are always looking to grow this number so that the Baltic remains truly representative of maritime markets. We hope that this greater offering will benefit the wider industry by encouraging non-members to join, saving them time and money individually as well as helping to reduce the number of outstanding debtors on the books across the industry.

If you are interested in finding out more about membership or the disputes service please contact:

Crispin Eccleston for membership details on +44 (0)20 7369 1654 / ceccleston@balticexchange.com

Or

Mike Dunwell for the Dispute Resolution service on +44 (0) 20 7369 1631 / M +44 7860 902547 / mdunwell@balticexchange.com

An interview with Mike Dunwell of the Baltic Exchange Disputes & Resolutions service