Letter of Indemnity

SladjanaSkakic · Post by **SladjanaSkakic** » Mon Feb 22, 2010 12:00 am

We have been asked by our customer (importer) to issue a Letter of Indemnity in order to make possible for him to take over the goods without presentation of an Original B/L (goods arrived before documents).
We will issue a Letter of Indemnity valid upon presentation, by us, of an original B/L to the carrier and whereupon it should be returned to us by the carrier, being noll and void.
But, is it possible to time limit our responsibility mentioning that Letter of Indemnity is valid upon presentation of an original B/L but latest until xxxx-xx-xx
In case that Letter of Indemnity can be limited by a time period for claim, do you have such information about how long time it must be valid and according to which rules, OR if it is not possible to time limit Letter of Indemnity.

Thanks in advance to all that can provide information.

NigelHolt · Post by **NigelHolt** » Mon Feb 22, 2010 12:00 am

You might this useful background information:

DC Insight VOL 7 Issue 3 July -September 2001
Jeremy Smith responds to N.D. George's article on shipping guarantees in the last DCI

However, it appears the UK banks never tried to make the agreement stick and it appears to have fallen into abeyance.

Anyway, different carriers seem to have their own individual requirements. If you contact the carrier directly you might be able to persuade them to accept an expiry date but I would not be optimistic.

[edited 2/22/2010 1:43:20 PM]

DanielD · Post by **DanielD** » Mon Feb 22, 2010 12:00 am

We've seen both. Duration limited, unlimited.
As Jeremy points out: depending on carrier/shipowner.
Ideally: amount: value of the goods but at the discretion of carrier: 150% or 200% of the value.
Duration 1-2 years but in practice unlimited or upon presentation of B/L or bnf's statement of release.
Jeremy:
if you still remember him: regards from Rolph Zweifel.

Daniel

SladjanaSkakic · Post by **SladjanaSkakic** » Tue Feb 23, 2010 12:00 am

Many thanks to both of you.

NigelHolt · Post by **NigelHolt** » Tue Feb 23, 2010 12:00 am

Daniel,

I had a message from Rolf last week saying he is leaving the bank. Is he joining yours?

Regards, Jeremy

DanielD · Post by **DanielD** » Wed Feb 24, 2010 12:00 am

Jeremy,

Not a chance, actually: early retirement.
Regards

Daniel

GlennRansier_ · Post by **GlennRansier_** » Wed Feb 24, 2010 12:00 am

I have had some success in limiting the steamship loi to 366 days. Some carriers informed me that after a year (365 days) they expire on their books. However, not all carriers will accept an expiry.