Laertis Shipping Corpn. v. Exportadora Espanola De Cementos Portland S.A. (The Laertes) - Q.B.D. (Com.Ct.) (Bingham J.) - 7 December 1981

Meaning of arbitration “in customary manner” in charterparty arbitration clause

Laertis chartered their vessel Laertes to Exportadora to carry a cargo of cement from Barcelona to a West African port. The charterparty contained a clause which provided for arbitration in London “in the customary manner”. A dispute arose relating to demurrage and the owners appointed an arbitrator in accordance with the charterparty clause. The charterers on their part did not appoint an arbitrator so the owners notified their arbitrator that he was to be the sole arbitrator in accordance with the provisions of section 7 of the Arbitration Act 1950, which provides: