Shipping

The parties contracted to transport rice under bills of lading that contained a number of different arbitration clauses. The claimant sought security from the defendant, which sent a letter of understanding setting out an arbitration procedure. A dispute arose as to alleged damage to the rice. The defendant submitted that the letter was not to be relied upon in determining how the arbitration should be carried out. The Commercial Court held that the claimant had validly commenced arbitration and the arbitral tribunal had jurisdiction to determine all the claims made by the claimant under the bills of lading.