Letter of Indemnity

Definitions #

A written promise by one party to compensate another for any loss caused by a specific shipping action, used when the original document is not available.

Technical A contractual undertaking by the shipper or receiver to hold the carrier harmless against claims from delivering goods without presentation of an original B/L.

Example The shipper issued a letter of indemnity to the carrier for breaking bulk without the original B/L.

Etymology #

From legal French 'indemnité' (protection against loss), via Latin 'indemnitas'.

Collocations #

LOI for pre-delivery 未凭正本提单交付货物的保函
LOI for container return 集装箱归还保函

Real Business Examples #

Upon providing a letter of indemnity, the carrier released the cargo to the consignee.
The bank refused to accept an LOI as collateral for a letter of credit.

Register & Variants #

Register: formal
BrE/AmE: 全球通用

Synonyms & Antonyms #

Synonyms: indemnity bond

Common Errors #

Assuming LOI guarantees payment LOI only covers specific losses, not a general payment guarantee.

Confusable Terms #

warehouse receipt vs Letter of Indemnity: Receipt vs an indemnity against liability.

Frequently Asked Questions

Is an LOI legally binding??

Yes, if accepted by both parties and supported by law.

Published: 2026-09-27 Category: Shipping