1. 1 ARBITRATION IN TRANSPORT DISPUTES IN FINLAND ”Arbitration clauses in standard charter parties referring to Umpire - an institution unfamiliar to Finnish law" 27.6.2014 NORA GAHMBERG-HISINGER

2. ARBITRATION CLAUSES IN STANDARD CHARTER PARTIES BIMCO Time charter parties LINERTIME, GASTIME (previously also BALTIME version 1939) LINERTIME Deep Sea Time Charter Clause 32 Arbitration ”Any dispute arising under the Charter to be referred to arbitration in [London], one Arbitrator to be nominated by the Owners and the other by the Charterers, and in case the Arbitrators shall not agree then to the decision of an Umpire to be appointed by them, the award of the Arbitrators or the Umpire to be final and binding upon both parties. [...]” London changed to HELSINKI (or Stockholm)

3. NOMINATION OF ARBITRATORS AND UMPIRE UNDER FINNISH LAW In accordance with the Finnish Arbitration Act Section 13 If there shall be more than one arbitrator but the parties have not agreed on the arbitrators or on the mode of their appointment, each party shall appoint the same number of arbitrators. The arbitrators thus appointed shall appoint one more arbitrator to act as the chairman, unless the parties have agreed that the dispute shall be decided by the arbitrators they have appointed. Finnish Arbitration Act does not recognize a two step procedure as seen in many commonly used charter parties; 1. nominate arbitrators, 2. if arbitrators can not agree, umpire to be appointed by the arbitrators later in the process

4. CONSEQUENCES Two arbitrators will be nominated in accordance with lex fori and a third arbitrator, the ”umpire” is appointed in case the two arbitrators can not agree Umpire will not participate in the process, will be ”on hold” If the two original arbitrators can not agree, the umpire steps in RESULT : The process will have to be renewed (witness statements etc)

5. SOLUTION Delete umpire and if Helsinki (or other place in Finland) is chosen as seat, rewrite the clause to state that arbitrators to be chosen in accordance with the Finnish Arbitration Act OR Use BIMCO Dispute Resolution Clause ”Law and Place of Arbitration as Mutually Agreed” a)This Contract shall be governed and construed in accordance with the laws of the place mutually agreed by the parties and any dispute arising out of or in connection with this Contract shall be referred to arbitration at a mutually agreed place, subject to the procedures applicable there.

6. THANK YOU FOR LISTENING! NORA GAHMBERG-HISINGER Partner Hammarström Puhakka Partners, Attorneys Ltd Bulevardi 1 A, 00100 Helsinki Puh. (09) 474 21, Telefax (09) 474 2222 nora.gahmberg@hpplaw.fi www.hpplaw.fi

7. 7 ASIANAJOTOIMISTO HAMMARSTRÖM PUHAKKA PARTNERS OY BULEVARDI 1 A 00100 HELSINKI +358 9 474 21 www.hpplaw.com SPECIALIZED IN THE ESSENTIAL