# Letter of Indemnity (LOI) in cargo release

*Last updated: 2026-06-25*

> A Letter of Indemnity (LOI) exists to protect a carrier that releases cargo without the original bill of lading being surrendered.

A Letter of Indemnity (LOI) exists to protect a carrier that releases cargo without the original bill of lading being surrendered. The shipper or consignee commits in writing to hold the carrier harmless against all claims, liabilities, and costs arising from that release. The need arises in practice when a vessel has already arrived at port and the consignee requires the goods urgently, but the original documents are still en route. Critically, an LOI does not legally replace the missing bill of lading – it gives the carrier a contractual backstop should a third party later assert a competing title to the goods. Many shipping lines will only accept an LOI countersigned by a first-class bank; without that backing, accepting one transfers significant legal exposure directly to the carrier.

**Source:** [https://www.wilhelmsen.com/products/marine/trade-and-logistics/dictionary-of-shipping/letter-of-indemnity/](https://www.wilhelmsen.com/products/marine/trade-and-logistics/dictionary-of-shipping/letter-of-indemnity/)

## Quick Facts

| Property | Value |
|---|---|
| Term | Letter of Indemnity (LOI) in cargo release |
| Language | EN |
| Word count | 129 |
| Last updated | 2026-06-25 |
| Source | https://www.wilhelmsen.com/products/marine/trade-and-logistics/dictionary-of-shipping/letter-of-indemnity/ |

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