A Critical Examination of Chapter 15 of the Rotterdam Rules: Analysis of the Reasons Why This Chapter Has Not Yet Been Opted For Application by Any Declaration of State

The Rotterdam Rules, the latest international regulation in the maritime shipping industry, were adopted following discussions and compromises in 2008. According to Article 78 of the Convention, only Contracting States that proclaim their intention to be bound by the provisions of Chapter 15, which deals with arbitration issues, will be obligated to follow them. However, no country has yet made such a declaration. Therefore, this article aims to ascertain the underlying factors. To commence, the article reviews the drafting process of the chapter and finds that the State Parties reached a consensus through a compromise, which has led to a conservative attitude towards the provisions of the chapter. Subsequently, the article assesses the innovative provisions of this chapter and determines that the implementation of some of these provisions may not only increase the costs and complicate the process of dispute settlement, but also create uncertainty. Finally, this article examines the legislative technique employed in this chapter and finds that the opt-in approach results in a lack of uniformity within the Convention, while the overuse of cross-references makes it difficult to grasp the true meaning of the chapter. These factors have collectively impeded the adoption of Chapter 15 of the Convention.