We use cookies to improve your website experience. To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy. By continuing to use the website, you consent to our use of cookies. Close

1 INTRODUCTION TO LETTERS OF INDEMNITY

Maritime Letters of Indemnity

1 INTRODUCTION TO LETTERS OF INDEMNITY GENERALLY 1.1 The maritime letter of indemnity is a very common tool. It is used by shipowners, sellers, buyers and their bankers to smooth their contractual obligations. The type of maritime letter of indemnity most frequently encountered in practice is that used to collect cargo without the production of a bill of lading. This practice is a violation of the presentation rule (which requires a shipowner to deliver only against an original bill of lading where one is issued) but enables buyers to collect goods at the port of destination without incurring demurrage and other costs at that port. Other typical situations in which letters of indemnity are commonly used include where a letter of indemnity is offered to the carrier in exchange for a clean bill of lading, and where a letter of indemnity is offered to the carrier in order for the carrier to change the destination of the goods carried by sea after a bill of lading has been issued.

The rest of this document is only available to i-law.com online subscribers.

If you are already a subscriber, please enter your details below to log in.

Enter your email address to log in as a user on your corporate account.
Remember me on this computer

Not yet an i-law subscriber?

Devices

Request a trial Find out more