Norton Rose Australia’s shipping practice is expecting to be increasingly busy with litigious work as more clients seek to recover funds or face collapse.

Head of the practice, Ernest van Buuren, said disputes in the shipping sector were arising as a result of insolvency, breach of contract, casualties (collisions etc) and other at sea mishaps. “We are noticing in the last three years since the global financial crisis a steady increase in the amount of litigation work within the sector,” van Buuren told ALB.

Another reason for the increase in litigious work is that clients are willing to pursue lost dollars regardless of the claim size. “People have an eye for the bottom line in terms of chasing what they believe is just and owing to them,” said van Buuren who has cases ranging from hundreds of thousands of dollars up to multi million dollars.

A new report from Norton Rose supports van Buuren’s own anecdotal observations. The Norton Rose Group Way Ahead Report found that 25 percent of Australian shipping businesses surveyed had been involved in more disputes leading to litigation, arbitration or mediation and according to van Buuren this activity is likely to increase over time. “Reports coming through from financiers indicate that there are more shipping companies in trouble,” said van Buuren. “Unless the market turns around significantly and unless they are able to successfully merge with other companies we may still see more shipping companies defaulting, leading to more disputes.”

He added that as a result of funding difficulties more and more shipping clients were seeking funds from alternatives sources such as private equity firms.