On 30 December 2024, the London Court of International Arbitration (“<span class="news-text_medium">LCIA</span>”) published an updated analysis on arbitration costs and duration. This is the third such report, covering cases that reached a final award between January 2017 and May 2024. Instead of expanding on prior reports, the LCIA compared the latest data with figures from its 2017 analysis. The findings indicate an increase in both arbitration costs and case duration, with the median case lengthening from 16 to 20 months and overall fees rising from USD97,000 to USD117,653.
Despite these changes, the LCIA’s caseload has remained relatively consistent with 2013 levels, with areas such as commodities, loans and shareholder agreements continuing to feature prominently. However, comparisons with other arbitral institutions, such as the International Chamber of Commerce (“<span class="news-text_medium">ICC</span>”) and the Singapore International Arbitration Centre (“<span class="news-text_medium">SIAC</span>”), highlight varying trends. The ICC, for instance, has recorded longer case durations but a significantly higher percentage of cases reaching a final award. In contrast, SIAC has experienced a notable increase in arbitration filings; however, it has not yet surpassed the LCIA in terms of awards issued.
One of the most significant developments in the LCIA’s cost structure is the rise in administrative charges, which has had a particular impact on lower-value disputes. While the LCIA remains a cost-effective option for high-value arbitrations, the report raises questions regarding the affordability of its services for smaller disputes. The findings suggest the LCIA may need to consider greater transparency in its reporting and explore potential procedural reforms, including the introduction of expedited arbitration mechanisms, to maintain its competitiveness in the evolving arbitration landscape.
