The Baltic provides a free dispute resolution and debt recovery service to members.
We help recover millions of dollars in late commissions, unpaid freight, demurrage, arbitration awards as well as resolving disputes amicably, often negating the need for further legal action. Maintaining commercial relationships is always a priority and cases reported to the Baltic are handled in close cooperation with the company reporting the issue.
- Case received and our team get full clariﬁcation from those involved. Cases are regularly resolved at this stage owing to Baltic Exchange involvement.
- If the case is clearly deﬁned, unpaid amounts are demanded or an acceptable repayment schedule is proposed. Where facts need further investigation, the team digs deeper with guidance on procedure from the Membership Council, acting in line with the governance of the Baltic Code.
- If the defaulting counterpart fails to provide satisfactory resolution, the Council will issue a warning that they risk being suspended or expelled from membership or Posted (also applies to non-members).
- If no acceptable resolution can be achieved, the Baltic’s ultimate ‘Posting’ sanction will be enforced. This warning is recognised across the global membership, which encompasses a majority of shipping interests worldwide as well as those in financial and commodity markets, due diligence agencies and other service providers.
The Baltic Exchange provides support to its members involved with commercial disputes
The Baltic Exchange has a system of “posting” which dates back to its trading floor days whereby the exchange lets its entire membership know if a company has withheld payment to a member, perhaps by not paying a commission or honouring an arbitration award.
Members of the Baltic have access to a comprehensive database of companies with whom other members have experienced difficulties in the past. Members are advised to check with the Baltic Exchange before fixing with an unknown counter party.
The Baltic can begin the process of chasing payments as soon as it is informed of an issue by a member.
Initially this will involve contacting the parties for information and establishing the facts of the case.
If the dispute is between members, the Baltic Exchange directors may ultimately suspend or expel a member who does not comply with a ruling from the directors or whose behaviour is considered a breach of the Baltic Code 2020.
Where one of the parties is a non-member of the Baltic, then the ultimate sanction is a posting on this site warning members of the risks of doing business with the counterparty concerned.
Often the threat of this step alone will see the problem resolved.
For further details about this service, please contact:
E: [email protected]
T: +44 (0)20 7369 1628