When a long-standing Baltic Exchange panelist member found themselves chasing an unpaid commission of more than US$50,000, months of reminders and follow-ups had brought no result. The broker had acted in good faith on a charter party agreement, only to see the owner fix the business and withhold the payment that was rightfully due. Frustrated and out of options, the member contacted Baltic Exchange’s Dispute Resolution Service. Within 10 days, the full amount was in their account.
It was a straightforward case but a striking example of the value that Baltic Exchange brings to its members.
“The broker had done everything they could to secure payment, but nothing was happening,” explains Tony McDonnell, Baltic Exchange’s Head of Dispute Resolution Services. “Once we stepped in, we contacted the owner directly. We keep everything polite and professional, but the Baltic’s name carries weight in the market. Within days, the payment was made. No legal action, no damage to relationships. Just a quick, fair outcome.”
Baltic Exchange Dispute Resolution Service
Baltic Exchange provides a free dispute resolution and debt recovery service exclusively for its members, helping to recover millions each year in unpaid commissions, freight, demurrage and arbitration awards. Cases are handled in strict confidence, with the aim of resolving matters amicably, preserving commercial relationships and avoiding costly legal action.
Members can contact the team simply by emailing
Once a case is received, the team works with the reporting company to establish the facts of the case, review the documentation and approach the counterparty. In many cases, disputes are resolved at this stage. If not, Baltic Exchange can escalate the matter with the support of its Membership Council, which may include issuing a warning of suspension, expulsion or the Baltic’s ultimate sanction: Posting, a market-wide notice alerting the global membership to the risks of trading with the defaulting party. This measure applies to both members and non-members, and is widely recognised across the shipping, finance and commodity markets. In many cases, the mere prospect of a Posting is enough to prompt a result.
Clear and concise
In this recent case, the process began with a clear claim: the commission amount was defined, the documentation was complete and the facts were not in dispute. That meant the Baltic could move quickly.
“We sent a polite but firm request for payment and gave the owner an opportunity to respond,” says McDonnell. “Within 10 days, the commission was settled in full. They didn’t offer an explanation, but in truth, that’s not our focus. Our priority is getting our members what they are owed.”
The combination of diplomacy, procedural clarity and the market influence of the Baltic is key to such swift outcomes. “We’re not debt collectors, but people in this market understand the significance of a Baltic Posting. It’s not something they want associated with their company name.”
With such a quick and easy experience, combined with getting the right result, the affected member noted that more members should be aware of the impact Baltic Exchange can have when it comes to payment disputes.
“We recently engaged the Baltic Exchange’s Dispute Resolution service to assist with recovering unpaid brokerage commission. The process was handled with exceptional professionalism and discretion. The team’s deep understanding of the shipping market, combined with their structured approach and the authority of the Baltic name, proved instrumental in resolving long-standing issues. In this instance, overdue payments that had been delayed for over a year were settled within two weeks following the Baltic’s intervention. Their ability to mediate firmly yet diplomatically ensured that commercial relationships were preserved while securing the outcome we needed. We would highly recommend and encourage more use of this service to all fellow members.”
First-hand expertise
Key to ensuring a quality dispute resolution service is Baltic’s team of experts, many of whom have had first-hand experience of the difficulties of managing these types of business critical issues while maintaining core business relationships.
“Several members of our team have been on the other side of this process as brokers, chasing unpaid commissions so understand how stressful it can be and how it can strain relationships. That’s why the Baltic’s approach, which is fast, confidential and commercially sensitive, is so valuable to our members and the wider market.”
“We still meet members who don’t realise they can come to us for help in these situations,” he says. “It’s free, it’s easy and it works. The sooner we’re involved, the better the chance of a quick resolution.”
This case is a textbook example: a well-founded claim, clear evidence and swift Baltic involvement led to a resolution in less than two weeks, without damaging a commercial relationship that may still hold future value for both parties.
For members, the message is clear: if you’re facing a dispute over unpaid commissions, freight, demurrage or arbitration awards, the Baltic Exchange’s Dispute Resolution Service is here to help. Sometimes all it takes is a single call to get the result you need.
Source: cyprusshippingnews.com
