As 2024 draws to a close, it signifies the end of another year in which international arbitration has continued to advance, and where there have been noteworthy developments that reinforce international arbitration’s place in the dispute resolution landscape. In the UK, the Arbitration Bill is closer to becoming law and is a positive step to ensuring that London maintains its status as a leading seat for international arbitration. Globally, updates to arbitration rules by leading institutions throughout 2024 (set to continue in 2025), demonstrate a commitment to enhancing efficiency and ensuring that these rules meet the needs of their users, reflect advances in technology and remain up to date.

The Arbitration Bill (the “Bill”)

The Arbitration Act 1996 (the “Act”) has governed arbitrations seated in England and Wales for almost 30 years. In 2022 and 2023, the Law Commission undertook a review of the Act to determine whether it was fit for purpose. The answer was yes in nearly all cases; English arbitration law did not need root and branch reform. Instead, a short bill consisting of 16 provisions and covering five main topics was proposed and introduced to the UK Parliament in November 2023. The Bill was on course to be added to the statute books this year but was put on hold when the general election was called in the UK. It was reintroduced by the new Labour government on 18 July 2024 and has now completed its passage through the House of Lords and had its first reading in the House of Commons on 6 November 2024.

The Bill, which has largely remained unchanged during its parliamentary journey, addresses issues which have come before the English courts in recent years. It clarifies the law applicable to arbitration agreements to address the uncertainty created by the Supreme Court decision of Enka v Chubb [2020] UKCS 38, and it codifies arbitrators’ duty of disclosure in response to the decision in Halliburton v Chubb [2020] UKSC 48. It also introduces an express power in relation to the summary disposal of unmeritorious claims, covers the immunity of arbitrators on removal or resignation and revises the procedure in respect of challenging arbitral awards under section 67 of the Act. The limited changes introduced into the Act by the Bill should hopefully be ready to be added to the statute books next year. The changes should mean that the Act will continue to govern arbitrations seated in England and Wales for many years and at the same time ensure that the popularity of London as a leading seat for international arbitration continues.

Popularity of arbitration

At this stage in the year, it is not possible to tell how many arbitrations were commenced in 2024 but the 2023 statistics, which have been released throughout the year, indicate that over the past eight years there has been an increase in the arbitration caseload of the two London based arbitration forums – the London Court of International Arbitration (LCIA) and the London Maritime Arbitrators Association (LMAA). There has also been an increase in the arbitration caseload of the Singapore International Arbitration Centre (SIAC) and the Hong Kong International Arbitration Centre (HKIAC). This trend however was not experienced by the International Chamber of Commerce (ICC), where the number of arbitrations remains down against its 2016 figures despite a significant increase on its 2022 figures (966 in 2016 and 710 in 2022 against 890 in 2023). These leading arbitral forums are likely to retain their popularity in 2025.

New arbitration rules

2024 saw the introduction of updated rules for three arbitral institutions, the China International Economic and Trade Arbitration Commission (CIETAC), the HKIAC and the Tokyo Maritime Arbitration Commission of the Japan Shipping Exchange, Inc. (TOMAC). The updated arbitration rules of the CIETAC sought to bring the rules in line with international best practice and to anticipate potential changes to the arbitration law of the People’s Republic of China. Meanwhile, the HKIAC introduced measures to promote diversity in arbitrator appointments, enhance information security, and address environmental impacts. The changes also provided tribunals with greater powers to streamline cases and enforce stricter time limits on awards. The TOMAC rules, which are used in maritime disputes, were also updated in 2024.

Next year will see the introduction of the seventh edition of Arbitration Rules of the SIAC. These rules were introduced following a public consultation in late 2023 and will come into effect on 1 January 2025. They include new procedures for preliminary determination and coordinated proceedings; an enhanced emergency arbitrator procedure; and provisions encouraging parties to consider mediation. The introduction of these revised rules will mark the end of a cycle which has seen all major arbitral forums update their rules in the past five years, which started in 2020 with the new LCIA Rules 2020.

Fiona Cain is a counsel in the dispute resolution team of Haynes Boone in London