Shipping Case Analysis - Assignment Example

Shipping Dispute Table of Contents Introduction 3 The Case 3 Conclusion 6 References 7 Bibliography 8 Introduction The mode of communication and means of transport have played pivotal role for the growth of trade and finance. In the present times, one can hardly write off the help that the business houses and the traders get from the advanced modes of communications. Similarly, in the early years it was the means of transport. And as there was no developed means of communication in those years, so the trade was primarily dependent upon the transport. With the advent of advanced communication, the international trade increased. And in order to facilitate international trade, the role of marine industry is undeniable. Ships have been the most important means of transport for ages now. And as such trades are generally international in nature, the movements of ships are guided by various international regulations and most importantly laws of different countries. Such countries include the land from which the ship commences its journey and also of the land to which the ship is scheduled to reach with the goods. If there is any dispute in any of the countries in which the ship has stopped in between the source and destination, then laws of such country also comes to play. Therefore, it can be assessed that the total regulations are over all a complex matter and it requires tremendous focus if any such dispute occurs. The Case In this case of maritime dispute, it is observed that the vessel named, M. V. Marine Parade loaded bulk cargo from the port of Gladstone of Australia. M. V. Marine Parade was a German vessel and fully loaded with corn. The vessel sailed for Matanzas of Venezuela. According to the papers, the ship contained 99,800 metric tons of Grade A1 corn. The ship safely reached the scheduled port and a draft survey made a draft survey saying that the goods are same in quantity as sent. The chief officer did not check all the goods but just made certain calculations on the basis of the survey to confirm that. Now once the ship was emptied, the receiving party claimed that the there was a shortage of 1600 metric tons of Grade A1 corn as according to the consignee, the good received weighed only 98200 metric tons. The management of the ship that brought the good claims that there was 99800 metric tons and refuses to own any responsibility. The case is not showing any signs of being solved and is in a position of stalemate. In order to resolve the disputes, the various parties involve can take a number of measures. Though in the whole transaction, there are various parties involved but primarily the dispute is in between the Brazilian consignee and the shipping vessel. There can be various dispute resolutions methods for the concerned parties. These include: ADR – Alternative Dispute Resolution are such methods of resolving disputes that are different from those of legal battles. It includes methods like negotiation between the parties, mediation and arbitration. Negotiation – Negotiation comprises of repeated meetings among the disputed parties to resolve the dispute. There are no external parties involved and both the parties try to extract maximum. As the case proceeds, it can be said that the negotiation process would not serve the purpose as the dialogues have already failed and the situation is that of a stalemate. Mediation – Mediation is a method which falls under the broad head of alternative dispute resolution. In mediation, a third party gets involved and the third party proposes certain solution to the conflicting parties. One important consideration is that the, the mediator i.e. the person who tries to solve the dispute between the parties, cannot impose any decision over them rather can just propose (IAMA, n.d.). There are high chances that the process of mediation in this purpose would not work as both the parties are obstinate at their position and the resolving initiatives have failed repeatedly. Arbitration – Arbitration is a process in which the dispute is settled outside the court of law but essentially in a tribunal that is chosen jointly by the parties involved. The tribunal fixes a person to judge the case and he is known as the arbitrator. It often so happens that the arbitrator concentrates on the law of the land to decide on the dispute (Ogwemoh, 2002). In this case the consignee and the shipping company can come to a joint decision to appoint an arbitrator to resolve. This is a feasible method because the court case would take lot of time and also the laws might vary from country to country. Mini trial – This can be the best possible method to resolve the dispute between the disputed parties. It includes senior executives from all the parties as the panel members and they act as judge. The witnesses are called and the important documents are taken to view the dispute. The process is fast and confidential (Law Library, n.d.). This method can really work with the representatives from the shipping company; the consignee and other parties can sit together and judge the case without any prejudices. Litigation – Litigation is about filing the dispute in to the court of law and to wait for the case to be resolved. This is method is binding but also is a slow and lengthy as well as costly process. Litigation should be seen as the last option as it will take whole lot of resources. Conclusion The case could be easily solved if the chief officer would have taken the entire stock of the goods received instead of the draft stock. According to the claims of the consignee, there was shortage in stock. It took eight days to empty the vessel. Now, the happenings of these eight days should also be considered and the role of the staffs involved in unloading should be investigated. All the involved party should try their best to find out the truth and take appropriate measure. References IAMA, No Date. What is Mediation? Resources. [Online] Available at: http://www.iama.org.au/mediation.htm [Accessed 08 January 2010]. Law Library, No Date. Minitrial. Alternative Dispute Resolutions. [Online] Available at: http://law.jrank.org/pages/8591/Minitrial.html [Accessed 08 January 2010]. Ogwemoh, S., 2002. Imperative of a Nigerian Maritime Arbitration Organization. Niger Delta Congress. [Online] Available at: http://www.nigerdeltacongress.com/iarticles/imperative_of_a_nigerian_maritim.htm [Accessed 08 January 2010]. Bibliography George Town University, No Date. Maritime Law Research Guide. George Town Law Library. [Online] Available at: http://www.ll.georgetown.edu/guides/maritimelaw.cfm [Accessed 08 January 2010]. Hamline University, No Date. Mediation Center. Mediation Center for Dispute Resolution. [Online] Available at: http://law.hamline.edu/mediation-center/mediation-center-dispute-resolution.html [Accessed 08 January 2010]. Read More