letter of indemnity (LOI)

(shipping) A document which serves to protect the carrier/owner financially against possible repercussions in connection with the release of goods without presentation of an original bill of lading. A letter of indemnity (usually as an indemnity for missing bill of lading) is used in cases in which the goods arrive at the port of destination before the original bills of lading. The issuance of the letter of indemnity allows the purchaser to take immediate delivery of the goods, thus saving himself time, additional demurrage, storage expenses, insurance costs, etc.

Was this article helpful?

Related Articles

Need Support?

Can't find the answer you're looking for?
Contact Support