Maritime Letters of Indemnity - Understanding the Basics
From discharging cargo without production of the original bills of lading, changing the discharge port or comingling cargos, letters of indemnity (‘LOI’) are one of the most widely used documents in the shipping industry but also carry some of the largest risks.
Before giving or receiving a LOI, parties need to understand these risks, including:
- Which parties can enforce the LOI?
- Will it affect insurance cover?
- Is it an enforceable contract?
- What type of security is the issuer of an LOI required to give and what happens if they do not have the means to provide security?
In certain cases (particularly in the liquid and dry bulk cargo sectors) the level of these risks can be 'make or break' for the parties involved.
This new webinar will introduce LOI issues, running through classic cases such as The Bremen Max up to recent decisions including The Miracle Hope to give those attending the foundations to assess and protect against risk as far as possible through careful drafting.
It will be of interest to owners, charterers, traders, and P&I/FD&D claims handlers alike. It is from an English law perspective but will benefit delegates internationally.
What You Will Learn
This webinar will cover the following:
- What is a letter of indemnity (‘LOI’)?
- Common uses of LOIs in shipping including discharging cargo without original bills of lading, clausing bills of lading, changing the destination of cargo under a bill of lading and comingling / blending cargos
- Circumstances in which LOIs are, and are not, enforceable
- Who can enforce LOIs (and the effect of the Contracts (Rights of Third Parties) Act 1999)
- The effect of LOIs on insurance cover
- Provision of security and claims handling issues
This pre-recorded webinar will be streamed at 12:30pm on Thursday 13th January 2022 and will remain available to view by delegates who have registered by then for 90 days.
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