Maritime Letters of Indemnity - Exploring the Legal & Practical Issues

Introduction

There are a variety of situations in which a shipowner or carrier may be offered a letter of indemnity.

Probably the most common situation is where the owner/carrier is offered a LOI for delivery of cargo without production of an original bill of lading.

Non-availability, or non-production, of a bill of lading has become an increasingly frequent occurrence and the practice is likely to continue because it has a number of practical advantages, such as preventing delays while parties wait for original bills to be produced or released at the load port.

However, it does expose the recipient to a number of potential liabilities, including mis-delivery claims.

Such liabilities are unlikely to be covered by P&I insurance because delivery of cargo without production of an original bill of lading prejudices a member’s cover.

It is, therefore, important to understand exactly how LOIs work in practice, the pros and cons.

The aim of this webinar to help those using LOIs, or advising on them, to maximise their usefulness and reduce the risks.

It will cover the main legal and practical issues you need to be aware of whether you are issuing a LOI, accepting it, or advising your client or your member on it.

What You Will Learn

The webinar will cover the following:

• What are LOIs?
• Why are they used?
• Cover or no cover?
• Potential problems - including mis-delivery, conversion and fraud
• Recommended wordings
• Key cases, including Laemthong Glory; Bremen Max; Jag Ravi; Zagora; Songa Winds; Miracle Hope
• The future - e-bills and the risks of cyberfraud
• Top tips - do’s and don’ts

This webinar was recorded on 14th September 2022