Commodity trading disputes require commercially sensible, efficient and internationally effective solutions, which are provided by Delos arbitration.

Arbitration is a private, efficient method for resolving disputes outside the courtroom. In business, it allows conflicting parties to present their cases to one or more neutral third parties (known as arbitrators), who make a binding decision that is enforceable internationally. Unlike traditional litigation, arbitration is typically faster, less formal, and confidential, making it an attractive option for companies looking to resolve disagreements privately while preserving relationships.

Delos is a leading global arbitration organisation that offers an award-winning arbitration solution. For the purposes of commodity trading disputes, Delos has a dedicated international pool of experienced arbitrators with knowledge across the various commodity sectors and English law expertise.

To be able to use Delos arbitration, the agreement needs to refer to Delos in case of dispute. This can be done by noting: DELOS COMARB Rules as part of the trade terms.

The reference to the DELOS COMARB Rules will in turn call the below detailed provisions, which have been tailored for the purposes of commodity trading:

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The reference to “DELOS COMARB Rules” (or similar wording) in a contract shall be deemed to mean that any dispute arising out of or in connection with that contract shall be exclusively and finally resolved by arbitration in accordance with the DELOS Rules of Arbitration as modified by the below COMARB Rider, as both in force on the date of commencement of the arbitration.

The “COMARB Rider” is as follows and in force as from 1 February 2025:

1. The seat of the arbitration shall be London, United Kingdom. The parties agree to hold hearings and/or meetings (if any) in any suitable location and/or by any suitable means of simultaneous communication.

2. The language of the arbitration shall be English.

3. The arbitration tribunal shall consist of a sole arbitrator if the value of the dispute falls within Tiers 1 and 2 of the Time and Costs Schedule of the DELOS Rules of Arbitration, and of a three-member tribunal in other cases.

4. The parties agree to keep confidential the existence and contents of the arbitration and the written and oral pleadings and all documents produced for or arising from the arbitration, save as may be required by legal or regulatory duty or to protect or pursue a legal right.

5. In keeping with the principal purpose of the DELOS Rules of Arbitration, the arbitral tribunal shall be particularly attentive to the efficient and proportionate conduct of proceedings in light of the issues in dispute, notably as regards the number and length of written submissions, the extent of any document production and the duration of any hearings. For Tier 1 and Tier 2 disputes, unless the arbitral tribunal decides otherwise on its own motion or upon a party’s application, there shall only be one exchange of written submissions (which, to the extent possible, should be limited to 50 pages each) in addition to the Notice of Arbitration and the Notice of Defence, and the hearing (if any) shall be limited to one day. The other stages of the proceedings shall be conducted in keeping with the rationale conveyed by this provision.

To facilitate the use of the DELOS COMARB Rules, parties may refer to them as such as part of a list of short-form terms or use the following model clause:

Any dispute arising out of or in connection with this contract shall be exclusively and finally resolved by arbitration in accordance with the DELOS COMARB Rules in force on the date of commencement of the arbitration.

Notes

(i)  Delos Dispute Resolution has provided a model arbitration agreement to facilitate reference to the DELOS COMARB Rules, particularly in commodities trading contracts concluded in short form by way of exchange of summary terms. Its specific nature means that it is appropriate to consider that, by referring expressly to the DELOS COMARB Rules, the parties intended to override any conflicting or contradictory dispute resolution provisions that the contract may contain, including where incorporated by reference and where such incorporated terms are expressed to take priority over any other contractual terms, on the basis that such incorporated terms (such as industry standard general terms and conditions) cover a much wider range of contractual matters.

(ii)  The DELOS COMARB Rules do not provide for a formal negotiation period before the dispute can be referred to arbitration on the basis that the business practices in relation to the type of contracts in which the DELOS COMARB Rules are likely to be used include pre-action negotiations.