Delivery of cargo without bills of lading
It is common in a lot of trades to accept a Letter of Indemnity ("LOI") for non-production of bills of lading. Although it is commonly accepted in many trades, the consequences of non-performance can be extremely serious for Members. Members are therefore reminded to be vigilant and cautious with regard to the practice of accepting LOIs for non-production of bills of lading. The above publication is a reminder of some of the risks and pitfalls with this practice.
BILLS OF LADING 2017 (1 MB)
You may also be interested in:
QCR Summer 2019: Delivery of cargo to a person not entitled to delivery under the bill of lading does not cause the bill to be spent
The “Yue You 902” and another matter  SGHC 106
IG Letters of Indemnity
Members are often asked to accept letters of indemnity (LOIs) from their shippers or charterers in return for the delivery of cargo without presentation of original bills of lading, the delivery of cargo at a port other than that named in the bill of lading (or both) and in various other circumstances.
QCR Spring 2021: Argos Pereira España SL and another v Athenian Marine Ltd  EWHC 554 (Comm)
Equitable Compensation for Failure to Comply with Arbitration Clause; the Owners issued bills of lading (governed by English law) for the cargo which contained a law and jurisdiction clause providing that disputes arising under the bills of lading were to be determined in arbitration in London.