LOIs AND RELEASING CARGO
– CONTRACTUAL ISSUES
& INSURANCE COVER
PROCEDURES AROUND BOL AND LOI
Why are procedures around bills of lading and letters of indemnity so important?
In the last decade there has been a small shift to using electronic bills of lading but the vast majority of cargoes that are shipped are done so against original paper bills of lading and these documents remain an integral part of the movement of goods by sea.
The charterparty will contain several clauses that are relevant to the bill of lading, the following are examples:
WHY IS THERE NO INSURANCE COVER?
Details on why indemnity covers such as P&I, provide insurance for owners and charterers for unexpected loss and why insurance does not provide cover for routine wear or tear to the ship or for deterioration in the cargo during the voyage.
“The LoI that charterers must give is often standard in format, but don’t mistake standard for low risk.”
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Review of your procedures around bills of lading and letters of indemnity.