Missing the time limit to start GAFTA or FOSFA arbitration means risking your entire claim — even when you are plainly right on the merits. These deadlines are short, they are applied strictly, and counting on the arbitrators to show leniency usually does not pay off. Below, I set out how much time you have, what you actually need to do within it, and what options remain if it has already passed. A time limit…
Rice that has comfortably passed quality control in the country of origin can turn out to be “unfit” in the country of destination — simply because a stricter aflatoxin limit applies there. Who bears that risk: the seller or the buyer? A dispute that went to GAFTA arbitration showed that the answer turns not on common sense, nor on what the goods were actually bought for, but on what the contract actually says. What aflatoxin…
Default clause is a damages compensation mechanism built into standard GAFTA contracts. When one party commits a material breach (breach of condition), the injured party may declare default and demand compensation equal to the difference between the contract price and the market price of the goods on the date of default. The fundamental difference from the general rules for damages recovery under English law: the GAFTA default clause locks in a specific formula for calculating…
The London Maritime Arbitrators Association (LMAA) has developed several frameworks to resolve maritime disputes. Its flagship LMAA Terms provide a comprehensive set of rules for large and technically complex cases. The Intermediate Claims Procedure (ICP) fills the gap for claims up to around USD 400 000, while the Small Claims Procedure (SCP) is designed to handle more modest cases quickly and economically. This article concentrates on the SCP, reviewing when it applies, how arbitrators are appointed,…
As of 1 October 2025, several amendments to Gafta contracts and arbitration rules have come into effect. The changes include revised provisions on delivery under a Letter of Indemnity (LOI), modified appropriation deadlines in several proformas, clarification of the “deemed default” date, a shorter deposit payment period under Gafta 126, finality of quality under Gafta 47 and 49, the introduction of a sampling clause for EU deliveries, and the standardisation of electronic submissions under Gafta…
The English High Court has handed down a decision affecting the rights of grain traders to recover unpaid contractual prices, overturning three GAFTA awards worth over USD 22 million. The case of Trans Trade RK SA v State Food and Grain Corporation of Ukraine [2025] EWHC 1803 (Comm) (17 July 2025) highlights the critical distinction between a seller’s right to claim the full price of the goods and the right to claim damages only. Background:…
In June 2025, the Commercial Court in London (High Court of Justice) handed down an important judgment concerning a challenge to a decision of the GAFTA Board of Appeal. CAFI – Commodity & Freight Integrators DMCC v GTCS Trading DMCC [2025] EWHC 1350 (Comm), demonstrates how arbitrators may exceed their jurisdiction and establishes an important precedent on overlapping arbitration agreements. The case offers a number of practical lessons for market participants. Factual background: two contracts…
In today’s globalised world, business routinely transcends national borders, which inevitably gives rise to disputes between companies from different jurisdictions. To resolve such conflicts, a mechanism has been developed that enables the effective settlement of disagreements without recourse to national court systems. International arbitration has become a trusted method of resolving cross-border commercial disputes, widely relied upon by businesses across the globe. Definition of International Arbitration International arbitration is an alternative (non-judicial) method of dispute…
FOSFA (The Federation of Oils, Seeds and Fats Associations) has updated its Arbitration and Appeal Rules. The new version, effective from 1 April 2025, introduces significant amendments to arbitration procedures, which will directly affect all participants in the agri-trade sector. How do the new rules differ from those in force since 1 April 2024, and why does it matter for your business? 1. FOSFA Jurisdiction: Express Ban on Jurisdictional Appeals Position in 2024: The previous…
Organic products, including organic corn, are gaining increasing popularity in the global market. These products attract consumers with their quality and safety. However, despite the high standards and thorough inspections associated with the production and certification of organic products, challenges and disputes often arise. In this article, we will examine the important aspects of organic corn certification and provide an example of a Gafta arbitration decision to illustrate the potential risks and consequences of such…
