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Cargo Claims in Latin America: Panama, Your Strategic Ally to Avoid Costly Arbitrations

Freight Claims in Latin America: Panama, Your Strategic Ally to Avoid Costly Arbitration.

Author

Martha Navarro
Founding Partner

Dear Latin American exporters and cargo insurance companies, you are fundamental pillars of trade in our region. You facilitate the movement of goods that connect markets, but the risks of cargo loss or damage are a reality. When this happens, the question is: how to recover the value efficiently, especially in the face of complex international claims?

 

At NAVARRO & NAVARRO, we are maritime litigation lawyers in Panama and we understand your challenges. For the Latin America's export sectorFor the company, a loss of cargo impacts profitability and confidence. For the cargo insurersThe first step is to compensate; the next step is the subrogation to recover losses against those responsible for maritime transport.

 

We present a strategic legal solution: the Panama's maritime jurisdictiona nerve center for resolve international cargo disputes.

The Common Challenge: Arbitration Clauses in Bills of Lading (B/L) and How Panama Offers a Solution

When a insured cargo is lost or damaged, the Bill of Lading (Bill of Lading or B/L) often dictates the way. It is common for these documents to impose arbitration clauses that force to resolve cargo disputes in distant and expensive jurisdictions such as London or New York. This represents a significant obstacle for companies in Latin America due to high costs, language barriers and complex logistics.

The Reality of Adhesion Contracts: The B/Ls are, for the most part, adhesion contracts. The Latin American exporter (and the subrogating insurer) rarely has the opportunity to negotiate these mandatory arbitration clauses; simply adhere to the terms and conditions of the shipping company.

The Panamanian Advantage in the face of Non-Negotiated Arbitration Clauses: Here the jurisdiction of Panama stands out. By means of forum arresti (arrest of the vessel in Panamanian waters to establish jurisdiction) and the recognition of B/Ls as contracts of adhesion, the Panama Maritime Courts frequently do not recognize the validity of arbitration clauses if they were not genuinely negotiated. This legal position protects the exporter or insurer of being forced into a costly international arbitration without actual consent.

Panama: Your Strategic Advantage for Cargo Claims and Insurance Subrogation in Latin America

The Panama Canal and our specialized maritime judicial system make the country a key ally. The ship arrest (or forum arresti) is the main tool.

 

  • How does Vessel Arrest work in Panama? If the vessel that transported the cargo (or a "sister ship") transits the Canal or Panamanian waters, our Maritime Courts may order its detention. This arrest of vessel for cargo claim The Panamanian court's jurisdiction is based on the following grounds.
  • Impact for Exporters and Cargo Insurers in LATAM: They have a way to bring their cargo litigation to an accessible, efficient jurisdiction with powerful coercive tools, potentially circumventing arbitration clauses in B/L that were not negotiated.

Key Benefits of Choosing Panama Maritime Courts for your Cargo Claim

  1. Overcoming Abusive Arbitration Clauses: The possibility that the Panamanian courts do not recognize non-negotiated arbitration clauses in B/Ls is a major advantage for cargo claimants.
  2. Access to Strategic Maritime Justice: High transit through the Panama Canal increases the likelihood of being able to arrest a vessel and to substantiate its international cargo claim here.
  3. The Forum Arresti as a Decisive Tool: The arrest of a vessel for debts or cargo damage is an effective pressure measure to accelerate agreements.
  4. Efficiency and Maritime Judicial Specialization: The Panama Maritime Courts offer agile and specialized processes, inspired by U.S. federal rules, with a court of maritime appeals that guarantees speed.
  5. Cost and Process Optimization for Latin America:
    • Competitive Maritime Litigation Expenses: Litigation in Panama results in minor procedural costscompared to the arbitration in London or Europe.
    • Judicial Process in Spanish: All the maritime dispute is developed in Spanish, eliminating translation barriers and costs.
    • Convenient Time Zone for LATAM: Facilitates communication and monitoring of your cargo claim case.
  6. Application of Foreign Law in Cargo Disputes: Our judges can apply the substantive law stated in your contract of carriage to decide the merits of the case. claim for loss of goods.

NAVARRO & NAVARRO: Your Panama Maritime Litigation and Cargo Claims Experts

At NAVARRO & NAVARROwe are your maritime lawyers in PanamaWe are ready to connect you with effective legal solutions. We know the needs of exporters and insurance companies in Latin America. Our team, led by Adrián Navarro, Senior Partner of maritime litigation and admiraltyoffers strategic consulting for international cargo claimsanalyzing the feasibility of litigating in Panama against arbitration clauses that have been prearranged.

If your company has suffered a pressure drop or your insurer seeks the subrogation for cargo lossConsider Panama as your best option.

Contact Our Panama Maritime Lawyers for your
Cargo Claim

Don't let the complexity of a international cargo claim or a arbitration clause imposed in a B/L prevent you from seeking the compensation you deserve. At NAVARRO & NAVARRO LLP, we are ready to advise you and represent your interests.

For a confidential, no-obligation consultation on your in case of cargo loss or damageor for more information on how to file a maritime claim in PanamaContact us:

Our lawyers specializing in maritime law and cargo claims are at your disposal.

 

Contact Information:
NAVARRO & NAVARRO LLP
AddressOceania Business Center, Punta Pacifica, Torre 2000, 42nd Floor, Panama City, Republic of Panama.
Phone/WhatsApp: +507 6080-3634
Web: www.nnalaw.com
E-mail: adrian@nnalaw.com

Disclaimer: The content of this blog is for general informational purposes only and does not constitute legal advice or create an attorney-client relationship. Each legal situation is unique and should be discussed with a qualified attorney to address your specific circumstances regarding your cargo claim or any other maritime matter.

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