Weyerhaeuser Company v. Western Seas Shipping Co., Eastern Seas Shipping Co., and Karlander (Australia) Pty. Ltd.

Appellant Weyerhaeuser Company (Wey-erhaeuser) appeals the district court’s denial of its petition to compel the consolidation of two maritime arbitrations into a single arbitration before five arbitrators.

I

Appellee Trans-Pacific Shipping Co. (Trans-Pacific) owns two ships that were time chartered by Weyerhaeuser. Weyerhaeuser subsequently subchartered the ships to appellee Karlander Australia Party Ltd. (Karlander). During the pendency of the subcharter, a dispute arose concerning cargo stowage restrictions.

Under the standard arbitration clause in the subcharter, Karlander demanded arbitration with Weyerhaeuser before a board of three commercial arbitrators over the losses it claims to have suffered as a result of Weyerhaeuser’s allegedly unreasonable refusals to permit underdeck container stowage. Subsequently, under an identical clause in the headcharter, Weyerhaeuser demanded arbitration before three arbitrators with Trans-Pacific over Weyerhaeu-ser’s right to indemnity from Trans-Pacific for any losses that Karlander may recover in its arbitration.

Weyerhaeuser petitioned the district court to compel consolidation of the two arbitrations into a single arbitration…