SCMA Arbitration Clause (singapore): Seat, Governing Law, Arbitrator Appointment & Expedited Procedure

Every charterparty, bill of lading or bunker supply agreement that routes disputes through Singapore needs a well-drafted SCMA arbitration clause, one that locks in the seat, nominates the governing law, sets the tribunal size and decides whether the expedited procedure applies. The Singapore Chamber of Maritime Arbitration (SCMA) is one of the default options for dispute resolution under BIMCO’s Law and Arbitration Clause 2020 and the NYPE Time Charter 2015, yet the standard model wording often requires tailoring to match a transaction’s risk profile.

This guide delivers contract-ready clause templates, a step-by-step commencement checklist and realistic cost benchmarks drawn from the SCMA Arbitration Rules 2022 and the published SCMA schedule of fees, giving in-house counsel and shipping teams the drafting tools they need before the next fixture is concluded.

• Four ready-to-copy clause variants covering seat, governing law, SICC supervisory designation and expedited procedure opt-in/opt-out.
• Realistic cost examples keyed to the SCMA schedule of fees for claim values from USD 50,000 to USD 1 million.
• A 10-point drafting checklist that contracts teams can run through before signing.

What Is SCMA and When Should You Use It?

SCMA is a specialist maritime arbitration institution headquartered in Singapore. Its rules are purpose-built for shipping disputes, charterparty claims, cargo damage, demurrage, bills of lading disputes, bunker supply disagreements and ship sale and purchase contracts. Unlike general commercial arbitration centres, the SCMA Arbitration Rules 2022 codify maritime industry practice, including the option for a tribunal of just two party-appointed arbitrators with a third appointed only if the first two cannot agree.

Maritime arbitration in Singapore benefits from a mature legal ecosystem. The International Arbitration Act (Cap. 143A) governs international arbitrations seated in Singapore, while the Singapore International Commercial Court (SICC) can serve as the supervisory court for applications arising under the Act. SCMA also works alongside BIMCO standard forms: where parties select Singapore as the arbitration venue in a BIMCO Law and Arbitration Clause 2020, the arbitration is conducted under SCMA Rules by default.

Industry observers expect the volume of SCMA-administered cases to keep rising as Asia-Pacific trade flows grow and as parties look for a cost-effective alternative to London Maritime Arbitrators Association (LMAA) proceedings. That makes the way you draft your SCMA arbitration clause a front-line commercial decision rather than boilerplate.

Key Drafting Choices at a Glance

Before settling on final wording, contracts teams should map six variables that shape every arbitration clause in Singapore:

• Seat of arbitration. Determines the supervisory court and the procedural law (lex arbitri).
• Governing (substantive) law. The law that the tribunal applies to the merits, it need not match the seat.
• Number and method of appointing arbitrators. Sole arbitrator, two-member panel or three-member tribunal.
• Expedited procedure opt-in or opt-out. Applicable automatically for claims up to USD 300,000 unless expressly excluded.
• Institutional administration. Whether SCMA administers the case or the parties proceed ad hoc under SCMA Rules.
• SICC supervisory clause. Whether to designate the SICC, rather than the Singapore High Court’s General Division, for applications arising under the International Arbitration Act.

Drafting the SCMA Arbitration Clause: Contract-Ready Templates

A well-constructed SCMA arbitration clause eliminates jurisdictional challenges at the outset and streamlines enforcement globally. Below are four clause variants, each paired with a note on its commercial effect.

Clause templates

Variant A, Default: Singapore seat, Singapore law, SCMA Rules

“Any dispute arising out of or in connection with this contract, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration in Singapore in accordance with the Arbitration Rules of the Singapore Chamber of Maritime Arbitration (‘SCMA Rules’) current at the time when the arbitration proceedings are commenced. The governing law of this contract shall be the law of Singapore.”

This is the simplest and most commonly used wording. It aligns seat, procedural law and substantive law, minimising enforcement risk.

Variant B, Singapore seat, foreign governing law

“Any dispute arising out of or in connection with this contract shall be referred to and finally resolved by arbitration in Singapore in accordance with the SCMA Rules current at the time when the arbitration proceedings are commenced. The governing law of this contract shall be English law.”

Commonly seen in charterparties where counterparties insist on English substantive law but accept Singapore as the seat. The tribunal applies English law to the merits while Singapore procedural law and the International Arbitration Act govern the arbitral process.

Variant C, SCMA + SICC supervisory designation

“Any dispute arising out of or in connection with this contract shall be referred to and finally resolved by arbitration in Singapore in accordance with the SCMA Rules current at the time when the arbitration proceedings are commenced. The parties agree that any application to the court under the International Arbitration Act in connection with this arbitration shall be heard and determined by the Singapore International Commercial Court.”

This variant incorporates the SCMA jurisdiction model clause announced jointly by SCMA and the Singapore Judiciary, under which parties designate the SICC as the supervisory court to hear applications under the International Arbitration Act. The practical effect is access to an international bench of judges experienced in cross-border commercial and maritime disputes.

Variant D, Express opt-out of the expedited procedure

“Any dispute arising out of or in connection with this contract shall be referred to and finally resolved by arbitration in Singapore in accordance with the SCMA Rules current at the time when the arbitration proceedings are commenced. The SCMA Expedited Procedure shall be excluded from applying to the arbitration.”

Use this language when the parties prefer full procedural flexibility, including oral hearings, extensive disclosure and a three-member tribunal, regardless of the claim value.

Drafting notes and risk flags

• Arbitration agreement originals. Under the SCMA schedule of fees, the SCMA retains a copy of the authenticated original arbitration agreement. Ensure the executed contract or fixture recap is available in original form or certifiable copy.
• Electronic bills of lading (e-BLs). Where a dispute turns on an e-BL, verify that the platform’s terms recognise Singapore-seated arbitration and that the underlying arbitration agreement is enforceable under the Electronic Transactions Act.
• Letters of indemnity (LOIs). LOIs frequently contain their own arbitration clauses. Check whether the LOI clause refers to SCMA or a different forum, conflicting clauses create enforcement headaches.
• Pathological clauses. Avoid hybrid references (e.g., “SCMA Rules administered by SIAC”) that create uncertainty about which institution controls the process.

SCMA Expedited Procedure: Thresholds, Timelines and Drafting Options

The SCMA expedited procedure under the SCMA Arbitration Rules 2022 provides a faster, lower-cost track for smaller maritime claims. Understanding how it works, and when to exclude it, is critical for controlling time and budget.

When to choose expedited

Under the SCMA Rules, claims up to USD 300,000 are eligible for the expedited procedure. The procedure is designed to deliver an award significantly faster than the standard track by streamlining evidence and limiting or removing oral hearings. It is well-suited to:

• Bunker disputes where quantum is straightforward and documentary evidence is decisive.
• Demurrage and despatch claims with clear laytime calculations.
• Freight shortfalls where the dispute centres on calculation rather than liability.

Opt-out sample text

Parties who want to preserve the right to a full hearing should add the opt-out wording shown in Variant D above: “The SCMA Expedited Procedure shall be excluded from applying to the arbitration.” This single sentence prevents automatic application of the expedited track regardless of claim quantum.

Conversely, parties may expressly opt in to the expedited procedure even for claims above USD 300,000, provided both sides agree in writing.

Indicative timeline: expedited versus standard

The likely practical effect is that the expedited procedure can halve both timelines and costs, a significant advantage for mid-market shipping operators managing multiple low-value disputes simultaneously.

Arbitrator Appointment, Panel Composition and Challenges

The SCMA Arbitration Rules 2022 offer a flexible framework for constituting the tribunal. The SCMA panel of arbitrators includes practitioners with deep maritime expertise, giving parties confidence that their dispute will be heard by specialists.

Appointing the tribunal

• Sole arbitrator. Parties may agree to appoint a sole arbitrator. If they cannot agree, the SCMA Registrar appoints one.
• Two arbitrators. The SCMA Rules codify maritime arbitration practice by allowing an arbitration to proceed with two party-appointed arbitrators, with a third arbitrator (presiding) appointed only if the first two cannot reach agreement. This structure mirrors LMAA practice and can reduce costs.
• Three arbitrators. Each party appoints one; the two party-appointed arbitrators select the presiding arbitrator. If they fail to agree, the SCMA Registrar makes the appointment.

Challenging and replacing an arbitrator

A party may challenge an SCMA arbitrator on grounds of justifiable doubts as to independence or impartiality. The challenge is decided by the SCMA Registrar after giving all parties and the challenged arbitrator an opportunity to comment. Replacement follows the same appointment mechanism that produced the original arbitrator.

Practical drafting: appointment clause language

To lock in a two-member panel (with a third only if needed), add to the SCMA arbitration clause: “The tribunal shall consist of two arbitrators, one appointed by each party, with a third arbitrator to be appointed in accordance with the SCMA Rules only in the event that the two arbitrators are unable to agree on any issue.”

Practitioners aspiring to join the SCMA panel of arbitrators typically need significant maritime law experience and may apply through the SCMA’s published appointment criteria.

Starting an SCMA Arbitration: Procedural Checklist

Commencing a maritime arbitration under the SCMA Rules involves a defined sequence. The following step-by-step checklist covers the process from notice through to final award.

1. Review the arbitration agreement. Confirm the clause refers to SCMA Rules, check seat, governing law and any expedited procedure exclusion.
2. Serve a Notice of Arbitration. Include the nature of the dispute, the claim sought and the identity of the appointed arbitrator (if applicable).
3. File with SCMA administration. Submit required documents, notice, contract, arbitration agreement original, and pay the initial filing fee and deposit as per the SCMA schedule of fees.
4. Constitute the tribunal. Follow the appointment mechanism specified in the clause or default SCMA Rules.
5. Exchange Statements of Claim and Defence. Comply with the timeline set by the tribunal or prescribed by the Rules.
6. Disclosure and evidence. Submit documentary evidence, including voyage fixture recaps, e-BLs, survey reports and LOIs. Coordinate with P&I clubs on privilege and funding.
7. Apply for provisional measures if needed. Consider interim relief in Singapore arbitration, including injunctions or vessel arrest through the Singapore courts, where urgent preservation of rights is required.
8. Attend the hearing. Prepare witness statements and expert reports. For guidance on hearing logistics, see preparation for and conduct of arbitration hearings.
9. Receive the award. The tribunal renders a final, binding award enforceable under the New York Convention.
10. Enforce or challenge. Apply to the Singapore courts (or the SICC, if designated) for enforcement, or set aside on the limited grounds available under the International Arbitration Act.

Costs: SCMA Schedule of Fees, Arbitral Fees and Realistic Exposure

Budgeting for maritime arbitration in Singapore requires understanding two distinct fee layers, the SCMA administrative fees and the tribunal’s own fees, both of which are governed by the published SCMA schedule of fees.

Administrative fees cover SCMA’s institutional services: case management, communications, appointment assistance and hearing-room logistics. Tribunal fees are set by the arbitrators in accordance with the SCMA schedule and depend on the complexity and value of the dispute.

Indicative fee exposure by claim value

Parties should consult the SCMA fees page directly for current rates, as the schedule is updated periodically. Early indications suggest that SCMA’s fee structure remains among the most competitive in Asia for maritime disputes.

Fee risk mitigation checklist

• Security for costs. Include a clause allowing the tribunal to order security for costs from the claimant.
• Advance deposits. Both parties typically pay equal deposits; factor this into cash-flow planning.
• Costs-follow-the-event. Specify in the SCMA arbitration clause whether the losing party bears the winner’s legal and arbitral costs.
• Fee caps. Consider agreeing a cap on tribunal fees in the terms of appointment, uncommon but commercially negotiable.

Enforcement and Court Interaction: SICC and Singapore Courts

Awards rendered in SCMA arbitrations seated in Singapore are enforceable in over 170 jurisdictions under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. The International Arbitration Act provides the statutory framework for enforcement within Singapore and sets out the narrow grounds on which an award may be set aside.

Since November 2023, the SCMA has offered a jurisdiction model clause under which parties designate the SICC as the supervisory court to hear applications under the International Arbitration Act. The SICC brings several advantages: an international panel of judges, procedural rules designed for cross-border disputes and familiarity with maritime and trade law. Parties opting for this route should use Variant C above.

For urgent measures before or during the arbitration, such as Mareva injunctions, vessel arrest orders or anti-suit injunctions, parties apply to the Singapore High Court (or SICC). The tribunal itself can also grant interim measures under the SCMA Rules, though court-ordered relief remains essential where third-party compliance is required.

Comparison Table: SCMA vs SIAC vs LMAA

For a deeper dive into SIAC procedures, see the SIAC Rules 2025 Singapore guide.

Template Clause Bank and Drafting Checklist

Below is a consolidated checklist for contracts teams finalising an SCMA arbitration clause. Run through every item before the agreement is signed.

1. Confirm the clause expressly names the SCMA Rules (with “current at the time when the arbitration proceedings are commenced”).
2. State the seat of arbitration, Singapore unless there is a specific commercial reason to choose otherwise.
3. Specify the governing law of the contract (Singapore law or English law are the most common choices in shipping).
4. Choose the number of arbitrators: sole, two-member or three-member tribunal. Draft the appointment mechanism.
5. Decide whether to include or exclude the SCMA expedited procedure. Add the opt-in or opt-out language as needed.
6. Consider adding the SICC supervisory model clause (Variant C) if the parties want an international judicial bench for court applications.
7. Include a costs-follow-the-event provision or other cost-allocation language.
8. Add a security-for-costs clause if one party’s ability to meet an adverse costs order is uncertain.
9. Cross-check that related contracts (LOIs, sub-charters, bunker supply agreements) do not contain conflicting arbitration clauses.
10. Ensure the arbitration agreement is in writing and that the executed original (or a certified copy) is accessible for filing with SCMA.

Conclusion

A carefully drafted SCMA arbitration clause is the single most important dispute-resolution decision a shipping contract can make. By specifying the seat, governing law, tribunal composition and expedited procedure preference at the outset, parties avoid costly jurisdictional battles and position themselves for efficient, enforceable resolution under the SCMA Arbitration Rules 2022. Whether the dispute involves a demurrage shortfall or a multi-million-dollar cargo claim, the clause templates and checklists in this guide provide a solid starting point, though every transaction warrants review by experienced maritime arbitration counsel to ensure the clause matches the commercial risk profile.

Sources

1. Singapore Chamber of Maritime Arbitration (SCMA)
2. SCMA, Service & Fees (Schedule of Fees)
3. Singapore Judiciary, Joint Media Release: SCMA Model Clause for SICC Supervisory Court
4. Singapore Statutes Online, International Arbitration Act
5. Singapore International Arbitration Centre (SIAC), Rules