Maritime Arbitration in Egypt: Place of Arbitration, Applicable Law and Enforcement

Maritime arbitration is a central mechanism for resolving disputes arising from international carriage of goods by sea. In disputes connected with Egypt, however, the validity and operation of an arbitration agreement may be affected by specific provisions of the Egyptian Maritime Commercial Law No. 8 of 1990.

This interaction between maritime legislation, arbitration law and international conventions can have significant consequences for the parties to a maritime dispute.

When Do the Special Egyptian Maritime Arbitration Rules Apply?

Articles 246 and 247 of the Egyptian Maritime Commercial Law No. 8 of 1990 establish specific rules for arbitration concerning claims arising from a contract for the carriage of goods by sea. Their specific application is connected to disputes arising from contracts for the carriage of goods by sea.

Where May Maritime Arbitration Be Conducted?

Article 246 establishes a special rule concerning the place where arbitration may be conducted in disputes arising from contracts for the carriage of goods by sea. At the claimant's choice, arbitration may be conducted within the jurisdiction of the court where: the port of loading is situated; the port of discharge is situated; the defendant's domicile is situated; the contract was concluded; the place designated in the arbitration agreement is situated; or the port where the vessel has been arrested is situated.

Article 246 further provides that any agreement concluded before the dispute arises which deprives the claimant of this statutory choice or restricts it is null and void.

What Law Governs the Merits of the Dispute?

Article 247 of the Egyptian Maritime Commercial Law provides that, where claims arising from a contract for the carriage of goods by sea are referred to arbitration, the arbitrators are required to determine the dispute in accordance with the provisions of the Maritime Commercial Law applicable to that contract.

What Is the Role of the Hamburg Rules?

Egypt is a party to the United Nations Convention on the Carriage of Goods by Sea, 1978 (Hamburg Rules). The Hamburg Rules establish a uniform legal regime concerning the rights and obligations of shippers, carriers and consignees under contracts for the carriage of goods by sea.

Arbitration and Vessel Arrest in Egypt

One of the most commercially significant features of Egyptian maritime arbitration is the potential interaction between arbitration proceedings and vessel arrest. Article 246 expressly refers to the jurisdiction of the court where the port in which the vessel has been arrested is situated as one of the places relevant to the claimant's choice of arbitration venue.