THIRD-PARTY FUNDING IN MARITIME ARBITRATION

The emergence of third-party funding has fundamentally changed the interface between maritime commercial dispute resolution and international arbitration . Additionally, the maritime industry is rapidly going through a process of digitalization characterized by the deployment of autonomous vessels, data routes using artificial intelligence, and smart decarbonization systems. This paper investigates on how the new developments create problems regarding risk estimation and liability advancements causing potential damage, which would ultimately affect the third-party funders involved. By examining the shifting landscape of emerging trends and domestic regulations, along with the leading arbitral venues, the research utilizes qualitative regulatory mapping and risk modelling techniques to identify systemic weaknesses. The results suggest that the use of algorithms, black box data problems, and data parameter shift alter the existing maritime risk model, thus placing funders at the risk of being liable for unpredictable adverse costs. In order to mitigate the problem, this paper suggests a risk management approach based on technological due diligence, appropriate disclosure practices, and systematic risk distribution within contracts.