GlossaryEN1 min readUpdated: Jun 25, 2026

International Commercial Arbitration for Freight Disputes

International commercial arbitration gives freight forwarders, shipowners and shippers a private mechanism for resolving disputes arising from freight contracts without resorting to national courts.

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Last updated: 25 June 2026Published: 19 June 2025

Source: https://iccwbo.org/dispute-resolution/dispute-resolution-services/arbitration/

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Definition & Explanation

International commercial arbitration gives freight forwarders, shipowners and shippers a private mechanism for resolving disputes arising from freight contracts without resorting to national courts. The parties appoint independent arbitrators and agree on procedural rules – most commonly the ICC Rules of Arbitration or the UNCITRAL Rules – along with a seat of arbitration that determines the applicable procedural law. Proceedings are confidential and typically more flexible than court litigation, concluding with an award enforceable in over 170 countries under the New York Convention of 1958. Appeal options are deliberately limited, which provides finality but places a premium on careful conduct of the proceedings. For cross-border freight disputes, arbitration is often the more practical route because it sidesteps questions of international jurisdiction and the enforcement of foreign judgments from the outset.