International trade

At Penningtons Manches Cooper, we are specialists in dispute resolution, contentious fraud, and trade finance advisory work involving all types of commodities. We advise in real time, across jurisdictions, engaging with multiple parties at all stages of disputes or transactions relating to physical goods, futures or financial instruments. Our legal guidance spans the full supply chain – supporting banks, producers, traders, and end-users – and covers both soft and hard commodities and energy-related matters.

Expert commodities trading and finance advice

Regularly acting across a range of commodities, our team advises on disputes arising in relation to energy products, including petroleum products, coal, LPG and LNG; metals and minerals, encompassing base, ferrous, precious, and minor metals; and agricultural commodities, such as grains, coffee, sugar, cocoa and animal feed products. We assist at any stage of the trading process, from mining or harvesting, to transportation and post-delivery, resolving matters which, in many cases, involve onward or parallel contracts and commercially significant third-party relationships.

Experienced in managing complex and large-scale disputes, our team’s caseload covers breaches of contract, including claims under standard form trade agreements and the Sale of Goods Act, substantial civil fraud, regulatory issues, and compliance with standardised international rules such as UCP 600.

Our experts are skilled in multi-party proceedings, including High Court litigation and arbitration under international rules such as those of the London Court of International Arbitration (LCIA), the International Chamber of Commerce (ICC), and the United Nations Commission on International Trade Law (UNCITRAL). As appointed advisors to a number of trade associations and arbitral bodies, we also handle trade arbitration under the rules of the Grain and Feed Trade Association (GAFTA), the Federation of Oils, Seeds and Fats Associations (FOSFA), the Refined Sugar Association (RSA), the Sugar Association of London (SAL), the Federation of Cocoa Commerce (FCC), and the Minor Metals Trade Association (MMTA).

They explain complex and sophisticated matters with clarity. The firm’s service levels are also consistently high, as is the responsiveness.

Chambers UK

Additionally, our trade finance team advises UK-based and international banks, financial institutions, and entities involved in global trade on financing across the commodities markets. We support parties on all sides of financing arrangements on letters of credit, guarantees and a broad range of financing facilities, such as prepayment and revolving credit. Most transactions handled by the team involve multiple jurisdictions and complex features for example multiple upstream and downstream users, or goods or security located in several different countries.

Instructed by banks and international traders with varying commercial priorities, our team structures transactions in order to mitigate potential issues and meet our clients’ objectives in their market environments, all while managing risk appropriately.

How we help our clients

Advice on commodity and other trading disputes

Electronic shipping and trade documentation

Export credit arrangements and tariffs

Futures, options and other derivatives

Letters of credit and bills of exchange, including disputes

Insurance

Regulation and compliance, including sanctions

Trade finance

Warehousing

Worldwide freezing orders, asset tracing, and recovery

Fraud, anti-bribery, and money laundering compliance, and all aspects of cybercrime

Force majeure issues

Recent work highlights

US$400 million trade credit insurance claim

Defending claims relating to trade credit insurance, worth US$400 million, and involving unlawful means conspiracy (Greensill Bank AG v Zurich Insurance Company Limited & others).

US$300 billion mining project claim

Defending claims in relation to a mining dispute, exceeding US$1.5 billion and involving unlawful means conspiracy, allegations of fraud, and a related Norwich Pharmacal application (Arcelormittal USA LLC v Ravi Ruia & others).

US$10.8 million standby letters of credit claim

Representing a Swiss bank in a US$10.8 million claim under standby letters of credit, involving fraud related issues, in the Commercial Court (Macquarie Bank Limited v Banque Cantonale Vaudoise).

High Court GAFTA appeal proceedings

Successfully appealing a GAFTA Appeal Board award under section 69 of the Arbitration Act 1996 in the High Court (Ayhan Sezer Yag Ve Gida Endustrisi Ticaret v Agroinvest SA).

Petroleum procurement arbitration

Acting in arbitration claims totalling around US$25 million for a procurement agency responsible for importing refined petroleum products, including a successful preliminary issue determination.

Trade associations and tribunals advice

Advising trade arbitration tribunals on procedural and substantive English law under various rules, including those of the Refined Sugar Association, Sugar Association of London, and British Coffee Association.

SIAC arbitration for coal trader

Successfully acting for a coal trader in an SIAC arbitration against its counterparty for failure to take delivery of two parcels of Indonesian-source coal cargoes.

Sanctions regulatory advice

Advising clients on sanctions issues, both generally and on sanctions clauses incorporated into charterparties and other contracts, and licence applications for Middle Eastern and Asian financial institutions.

US$300 million letter of credit facility

Assisting a Japanese bank on a letter of credit facility to the commodity trading division of a US bank for the financing of oil stored in the Netherlands, Belgium and Denmark.

US$210 million pre-payment facility

Advising the Maritime Law Associations (MLAs) on a syndicated US$210 million pre-payment facility to a major international commodities trader’s Brazilian sugar export business. The funding was secured against assets in Brazil, Switzerland and the UK.

Pre-export finance facility arrangement

Representing an international oil trader as arranger and lender of a US$500 million pre-export finance facility to a Nigerian upstream oil company, to finance production under several NNPC concessions.

US$100 million trade finance facility

Acting for a bank in drafting and completing a trade finance facility for a multinational energy and commodities trading group, with multiple co-borrowers across several jurisdictions, parent guarantees, and a wide-ranging security package.

SIAC arbitration for coal trader

Successfully acting for a coal trader in an SIAC arbitration against its counterparty for failure to take delivery of two parcels of Indonesian-source coal cargoes.

Sanctions regulatory advice

Advising clients on sanctions issues, both generally and on sanctions clauses incorporated into charterparties and other contracts, and licence applications for Middle Eastern and Asian financial institutions.

US$300 million letter of credit facility

Assisting a Japanese bank on a letter of credit facility to the commodity trading division of a US bank for the financing of oil stored in the Netherlands, Belgium and Denmark.

US$210 million pre-payment facility

Advising the Maritime Law Associations (MLAs) on a syndicated US$210 million pre-payment facility to a major international commodities trader’s Brazilian sugar export business. The funding was secured against assets in Brazil, Switzerland and the UK.

Pre-export finance facility arrangement

Representing an international oil trader as arranger and lender of a US$500 million pre-export finance facility to a Nigerian upstream oil company, to finance production under several NNPC concessions.

US$100 million trade finance facility

Acting for a bank in drafting and completing a trade finance facility for a multinational energy and commodities trading group, with multiple co-borrowers across several jurisdictions, parent guarantees, and a wide-ranging security package.

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