Mediator, consultant and arbitrator/
Morten Guldager on why you should use the GPC Pulses Contract

How did you move from trading to arbitration? Can you tell me a little about your history?

I have been in this business — grain and feedstuffs — for my whole life. I had been working for a private Danish company since I left Commercial High School; that was about 25 years of execution, chartering, and trading. The company was sold in 2002. I had different possibilities, but I decided to make myself independent. I have been working full time within this business as a consultant and arbitrator for about 15 years now. 

My trade experience within the pulse industry is restricted to Denmark, where we mostly have peas and beans. I’ve learned about other, exotic products during the last 15 years as a part of my time in consultancy. During this process, I have educated myself and I applied to be an arbitrator so I'm an arbitrator in Copenhagen, Hamburg, and Rotterdam. I’m also an arbitrator in London through GAFTA and FOSFA.

What is the main context of the work you do? Is it between producers and shipping companies, or buyers and sellers, or both?

Most cases I’ve had where GPC members have been involved are in relation to the fulfillment of contracts. And there could be many reasons for non-fulfillment. It could be simply due to the market; if the price goes up and down, then one party has different interests regarding the fulfillment. This is, of course, not the best situation, but it happens, so you have to be there. The next one is mostly arguments about quality. Nowadays, most companies are trading on the basis of a first-class, independent, Superintendent Quality and Condition Certificate, so the sampling and analysis take place at loading. But even so, it’s not every time that the buyers are happy, so there are some discussions and disputes. This is where the people come to me and say “We have this situation, what do you recommend that we do? How should we act?” I assist the one who comes to me first. There are many other issues also. They could be about transport; in the pulse industry, it’s bulk shipment or mostly container business, so it is a question of also using the right contracts and having the right jurisdiction so you know where and how to proceed.

Have you found an increase in the need for your services as a result of the current shipping chaos?

Many people have probably calculated their costs for a shipment that will occur perhaps two or three months later, so they will have been caught by the rising prices in the container market. Nowadays, that is something that hurts a lot! It can lead to considerations of non-fulfilment. People are becoming very creative when prices are really moving. 

It is the current situation that has created these current problems, but there is also influence from the personalities of the people involved. Some people don’t like to have disputes, and they say “Ok, let’s settle this; we have to trade in the future. Let’s not become enemies.” When you have to solve a dispute, is it good to know if the contract terms are in your favour; that is where I can assist my clients. It is easier to solve a problem if you are in the right position. 

 
When you were involved with the trading side of things, what specifically were you trading?

In Denmark, we are exporters of grain, along with rapeseed, peas, beans, malting barley. And as you probably know, there are more pigs in Denmark than there are Danes, so we have huge production of pork meat and of poultry as well. We are big importers of protein: soya, rape and sun meals, etc. So there is huge traffic in and out, from and to all over the world.??

Now that you’ve moved into the arbitration and mediation side of things, are you enjoying it? Do you like what you do?

Yes, I do. I find it very interesting. It gives pleasure: when traders do a good contract, they say “Yeah, we did it!” If I win a case, I say “Yeah, I did it!” So it’s pretty fun. I never regret that I made myself independent doing this job.

What are the aspects of your work that you find the most interesting?

I have many clients all over the world from working for so many years in this market. But you always meet new people and new companies that have new ideas. Sometimes you think that elements of these dispute cases will repeat themselves, but there are always some new aspects, and it’s always a little bit tricky. There are contracts that have been around for 100 years and that are updated and adjusted every five or ten years, and you would expect that, by now, they would be really good. But still, disputes continue. 

Is there any advice that you would give to traders to help them to avoid ending up in dispute situations themselves?

My recommendation for GPC members is to make sure that they use the GPC Pulses Contract No. 1; it will protect them. If they make their own contracts, they have no jurisdiction. That means that if they haven’t agreed a place to go and there is a dispute, they will have to go into other countries to the local courts. It could be a country with a language that they don’t even know, so they’re really not in a good position. I can only recommend that GPC members use GPC contracts. 

Do you find that clients keep getting into trouble?

No, not that they keep getting into trouble. Nevertheless, active traders do have situations from time to time, and I’m happy to say that my clients come back to me, even if it’s several years later when something else arises. So I must be doing something right!

Morten Guldager
web: www.guldager.co.uk
email: morten@guldager.co.uk
phone: +45  40194811