GlossaryEN1 min readUpdated: Jun 25, 2026
Letter of Indemnity (LOI) in cargo release
A Letter of Indemnity (LOI) exists to protect a carrier that releases cargo without the original bill of lading being surrendered.
Quick Answer
Last updated: Published:
Source: https://www.wilhelmsen.com/products/marine/trade-and-logistics/dictionary-of-shipping/letter-of-indemnity/
Category
Logistics concept
Reading time
1 min
Words
129
Mentioned in
–
Definition & Explanation
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.
Next steps
Matching tools and partners
Related Terms
You might also be interested in these terms
Logistics knowledge straight to your inbox
Free · No password · Never a paywall. Weekly top news and facts from logistics.
Community Questions & Answers
Share your knowledge, ask follow-up questions, or add practical insights to this page. Every contribution is moderated before publication.
No community answers yet. Be the first.