Arbitration continues to be a widespread method for resolving complex commercial disputes across a myriad of industries. Following Leonie Ghirardi’s summary of the arbitral statistics from key arbitral institutions, this blog draws on detailed data from the International Chamber of Commerce (ICC) and the London Court of International Arbitration (LCIA). We will delve into key aspects such as the amounts in dispute, industries, seats and governing laws, and the diversity of arbitrators.
Overall, in 2023, ICC continued to assert its dominance over LCIA as a preferred institution for international arbitration, reflecting its global reach and reputation for handling complex, high-value disputes. ICC registered a substantial number of new cases under the ICC Arbitration Rules, totalling 870, which marks an increase from the previous year (of 695 cases) and underscores the institution’s widespread acceptance and reliability in the arbitration community. In comparison, LCIA also experienced a significant caseload, with 327 new arbitrations pursuant to the LCIA Rules filed in 2023 (from 293 in 2022). This number indicates the LCIA’s strong standing, particularly in the transport and commodities sector, although it does not eclipse ICC’s appeal across broader industries and geographies.
Amounts in dispute
The financial stakes in arbitration cases provide significant insight into the scale and complexity of the disputes handled by major arbitration institutions. Given the relatively high costs of institutional arbitration proceedings, the amounts in dispute tend to be fairly high.
According to the ICC’s 2023 report, the average amount in dispute in new cases was approximately US$65 million, representing a significant drop from US$154 million in 2022.
The median amount in dispute was US$5.5 million (compared to US$6 million in 2022), which illustrates the wide variance in case sizes and underscores the ICC’s capacity to handle both large-scale and relatively smaller disputes. The amount in dispute varied significantly from one case to another, from below US$2,000 at the low end and exceeding US$6 billion at the high end.
The LCIA report 2023 concluded that a significant number of arbitrations included higher amounts in dispute than a year before.
Overall, however, the monetary relief sought looks similar (as a percentage of cases with quantified monetary claims):
| Sum (US$) | ICC | LCIA |
| <1m | 26% | 31% |
| 1-5m | 23% | 20% |
| 5-10m | 12% | 10% |
| 10-50m | 23% | 22% |
| 50-100m | 5% | 8% |
| >100m | 11% | 9% |
This data highlights the variability in case values handled by both institutions and underscores the adaptability of arbitration to address disputes of all scales, from modest claims to multi-billion-dollar conflicts.
Industry sectors
The range of industries represented in arbitration cases underscores the breadth and versatility of arbitration as a dispute resolution mechanism. In 2023, there were no significant changes in the industry sectors dominating the ICC and LCIA.
The ICC’s 2023 statistics reveal that the construction & engineering sector remains the most prominent, accounting for 25.2% of new cases. Energy was the second most popular sector, with 20.6% of new cases. Together, these account for almost half of the cases.
Given the inherent complexities and high values associated with construction projects, the construction and engineering sector’s dominance in ICC arbitration is unsurprising. Disputes in this sector often involve multiple parties, intricate technical issues, and substantial financial stakes. Typical issues include delays, cost overruns, and disagreements over contract terms and performance standards. The ICC’s expertise in handling such disputes is well recognised, providing parties with a reliable forum for resolving these complex matters.
Modern energy projects are also frequently high-value and high-risk. With the momentous transition from fossil fuels to renewable energy there has been an inevitable increase in the number of disputes due to the scale and complexity of projects.
In contrast, the LCIA’s 2023 report highlights the prominence of the transport & commodities sector, which accounted for 36% of the cases (on par with 37% in 2022). The second and third most common industry sectors in 2023 were banking & finance and energy & resources sectors, representing 16% and 14% of cases, respectively.
The LCIA’s strong presence in the transport & commodities sector indicates its specialisation in this area. Disputes often arise from international trade, shipping contracts, and the sale of raw materials. These cases can involve intricate issues of contract interpretation, compliance with international trade regulations, and performance disputes. The LCIA’s ability to manage these high-stake and complex disputes makes it a preferred choice for parties in this sector.
Diversity of arbitrators
Diversity among arbitrators is critical for ensuring fairness, representation, and varied perspectives in arbitration proceedings. While both ICC and LCIA are determined to improve diversity, their efforts are limited by the fact that the parties make most appointments.
Nationality
Arbitrators from all over the world are appointed by ICC and LCIA. In ICC, the 935 individual arbitrators confirmed or appointed in 2023 came from 89 jurisdictions. In the LCIA, arbitrators came from 41 different countries.
British arbitrators are traditionally the most popular in these arbitration institutions. In 2023, these accounted for 13.04% of arbitrators in ICC and 58% in LCIA. Interestingly, the LCIA Court itself selected more non-British arbitrators as a percentage of its total appointments than the parties and co-arbitrators.
Gender
In 2023, both institutions made significant efforts to enhance gender diversity among arbitrators, though their approaches and outcomes showed some differences.
LCIA saw notable progress, with women making up 48% of all appointments by the LCIA Court, a rise from 45% in 2022. This near-parity highlights LCIA’s strong commitment to gender diversity. The percentage of women appointed as co-arbitrators also saw a significant increase, jumping from 23% in 2022 to 39% in 2023. Moreover, parties marginally improved their selection of female arbitrators, with women accounting for 21% of party appointments, up from 19% the previous year. Overall, LCIA achieved a total of 34% female arbitrator appointments in 2023, an improvement from 28% in 2022. However, while these gains are encouraging, they underscore the need for continued efforts, especially by parties, to further enhance gender diversity in arbitration.
ICC also made strides in promoting gender diversity. In 2023, women represented 29.7% of all arbitrators appointed in ICC cases, a small increase from 28.6% in 2022. Of all women arbitrators confirmed or appointed in 2023, 47% were nominated by the parties, 37% were appointed by the ICC Court, and 16% were nominated by the co-arbitrators. However, overall, the ICC’s percentage of female appointments, though improving, remains behind LCIA’s more balanced gender representation.
Notably, both ICC and LCIA recognise the importance of gender diversity, and their ongoing efforts are crucial for fostering inclusivity and fairness in international arbitration.
Age
While the ICC report briefly mentions the age of the arbitrators, LCIA did not provide comparable statistics, focusing instead on the first-time appointees.
In 2023, the average age of arbitrators confirmed or appointed by ICC was 55 years, consistent with previous years, with only 38% of all arbitrators being under the age of 50.
A remarkable detail in the ICC report is the age difference between arbitrators appointed by the ICC Court and the global average. Arbitrators appointed directly by the ICC Court were, on average, five years younger than the global average. This suggests that the ICC Court is more proactive in appointing younger arbitrators, perhaps recognising the value of diverse perspectives and the importance of developing the next generation of arbitration leaders.
In LCIA, the number of first-time appointees decreased slightly – the overall percentage of appointments of candidates not previously appointed by the LCIA Court was 16% (compared to 17% in 2022).
This contrast between ICC’s focus on age diversity and LCIA’s emphasis on introducing first-time appointees highlights the different strategies each institution employs to bring fresh perspectives into arbitration. While ICC aims to balance experience with the integration of younger arbitrators, LCIA remains committed to nurturing new talent by offering opportunities to first-time appointees, even if the percentage slightly decreased in 2023.
Seat and governing law
The choice of seat and governing law in arbitration can significantly influence the proceedings and outcomes of disputes. Both the ICC and LCIA reports for 2023 highlight the ongoing preference for well-established arbitration seats like London and Paris and the dominance of English law as the governing law in international disputes. However, the reports also reflect a growing diversification in the choice of seats and governing laws as parties increasingly consider alternative places like Singapore, Mexico, and UAE, which offer strong arbitration frameworks and global accessibility.
The ICC report concluded that in 2023, the top three countries selected as places of arbitration remained France (with 99 cases, 96 of them seated in Paris), the United Kingdom (with 85 cases, all seated in London), and Switzerland (with 79 cases, 49 of them seated in Geneva).
Choice-of-law clauses were included in contractual provisions in 95% of all new cases. English law was most frequently selected (131 cases or 15%), followed by Swiss law (83 cases or 10%) and the laws of a US state (81 cases or 9% split between 12 states).
In 2023, parties in LCIA arbitrations selected seats in 16 different countries, with London being the predominant choice, selected in 86% of cases (compared to 88% in 2022). This underscores London’s enduring status as a leading arbitration hub, favoured for its robust legal framework and experienced arbitration community.
The laws of 27 countries were chosen as the governing law, with the law of England and Wales being the most frequently selected, used in 83% of cases (down from 85% in 2022). Other than combining English law and London, parties in some specific jurisdictions, such as Mexico, Qatar, and Canada, matched the law and seat.
Conclusion
The arbitration landscape in 2023 reflected the evolving dynamics of global commerce and the increasing complexity of disputes. Both ICC and LCIA have maintained their critical roles as leading arbitration institutions, serving as trusted platforms for resolving high-stakes disputes across a wide range of industries. While ICC continues to dominate with its broader global reach and higher caseload, LCIA has carved out a strong niche, particularly in transport and commodities.
Diversity, in both gender and nationality of arbitrators, has improved, though there is still more progress to be made, particularly in appointments by parties. ICC and LCIA are showing increased efforts to promote younger arbitrators and first-time appointees, underscoring the importance of refreshing the pool of arbitrators and bringing diverse perspectives into proceedings.
Moreover, the choice of seat and governing law remains crucial, with established arbitration hubs like London and Paris continuing to lead the way, but with a growing trend toward diversification, as parties increasingly opt for emerging arbitration centres that offer strong legal frameworks and global accessibility.
In summary, the data from 2023 paints a picture of an arbitration world that is adapting to the demands of modern global business, with institutions like ICC and LCIA continuing to evolve to meet the challenges of diversity, innovation, and efficiency in dispute resolution.
If you would like to discuss the contents of this article further, please contact Evgeniya Rubinina or Daniel Levy.