Maritime Letters of Indemnity - Unpicking the Tricky Issues

Introduction

Increasingly, shipowners accept letters of indemnity instead of the surrender of an original bill of lading against delivery of cargo.

This practice has led to several issues for shipowners and others, including a sharp increase in misdelivery claims.

Nonetheless, letters of indemnity will continue to be used in the shipping industry because they facilitate international commerce and prevent delays.

Maritime lawyers, P & I Club case handlers and managers and others working in the maritime sector must have a sound understanding of what letters of indemnity are, their key uses, the potential problems and pitfalls of using them, and how to minimise risks.

They should also be aware of how the English courts have interpreted them and when they will enforce them.

What You Will Learn

This new live and interactive session will cover the following:

• What LOIs are
• Their uses/why they are needed
• Charterparty obligations
• Insurance position - cover or no cover?
• Commonly occurring situations including: misdelivery; conversion; switch bills; claused bills; fraud
• Problems of enforcement
• What to watch out for when issuing an LOI
• What to watch out for when being offered an LOI
• LOI wording - International Group standard wording
• Key Court decisions: Laemthong Glory; Bremen Max; Jag Ravi; Zagora; Songa Winds; Miracle Hope; Trafigura v Clearlake; Clearlake v Petroleo Brasileiro
• E-bills - are they the solution? Risks of cyberfraud. MSC Eugenia - Court of Appeal considers position when cargo released against PIN codes instead of bills of lading
• Checklist - do’s and don’ts

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.