Agribility - Letter of Indemnity

Letter of Indemnity

This module will provide an understanding of what a Letter of Indemnity (LOI) is, why it is needed and how it is used in the commodity industry. The format of a LOI will be explained, plus any risks associated with using LOI's will be discussed. We will consider best practice when using LOI's in the commodity trade.

After completing this module, the learner will be able to:

• Explain what a LOI is and what information the LOI should contain.
• Identify the circumstances in which a LOI is issued and the logistics of issuing.
• Understand the parties involved in a LOI and the relationship between the LOI and other key shipping documents.
• Discuss the risks associated with LOI's in behalf of both the charterer and the carrier.