Cost and Duration of Arbitration

Over the past year, several arbitration institutions have released summaries of data regarding the cost and duration of arbitration. Such institutions include the London Court of International Arbitration (“LCIA”) (data from 3 November 2015), the Arbitration Institute of the Stockholm Chamber of Commerce (“SCC”) (data from 24 February 2016) and the Singapore International Arbitration Centre (“SIAC”) (data from 10 October 2016).

The most recently released data is from the Hong Kong International Arbitration Centre (“HKIAC”), released on 15 December 2016, analysing costs and the duration of arbitration cases under its 2013 Rules.

Statistics were based on 41 cases filed since beginning of 2014 that lasted under a year and cost less than USD 32,000.

The data reveals that the mean total cost of an arbitration at the HKIAC was USD 65,721 (USD 52,643 for the Arbitral Tribunal’s fees and expenses and USD 13,077 for the Arbitration Center’s administrative fees).

As for the duration of arbitration, the data shows that an arbitration is half as long when conducted under the expedited procedure (around 6 months), although administrative fees were more expensive (USD 2,000 more in average). Without surprises, an emergency arbitrator proceeding will be the most expensive in terms of atypical arbitration proceedings. The emergency arbitrator’s fees would amount to USD 35,225, while the Arbitration Center’s administrative fees would amount to USD 5,798, for a short 14-day proceeding.

It is also interesting to note from the data that the SIAC and the HKIAC appear to have both the most cost and time-efficient systems, when compared to other institutions such as the LCIA and the SCC, although this may also be due to other factors such as the amount in dispute.

Below are tables showing the relevant data and comparisons.

Comparison of Duration

Comparison of Administration Fees

Comparison of Tribunal Fees