Bee On Trade

Letter of Indemnity (LOI)


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Frequently Asked Questions about Letter of Indemnity (LOI)

What is a Letter of Indemnity (LOI)?

A Letter of Indemnity (LOI) is a legal instrument that binds the shipper to bear the risk of any losses or harm brought on by a violation of the contract, such as the terms and conditions of a bill of lading.

When is the need for an LOI?

If the shipment is released with a telex release, **Beeontrade** will require an LOI if the consignee is receiving freight without the presentation of an original bill of lading that has been endorsed.

The LOI allows **Beeontrade** to release the goods to the consignee without the original bill of lading.

What are the circumstances requiring an LOI according to Beeontrade?

- Shipment released with a telex release

- Consignee receiving freight without an endorsed original bill of lading

Are there other instances where an LOI may be required?

Yes, ocean carriers may also require an LOI for specific shipments, particularly those involving lithium batteries.

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