DELIVERY OF CARGO WITHOUT ORIGINAL BILLS OF LADING
|Author(s)||UK P&I Club|
|Publisher||UK P&I Club|
|D O W N L O A D|
This official UK P&I Club publication is devoted to delivery of the cargo transported by ships without original bills of lading. It is quite common to accept and LOI, standing for the letter of Indemnity, for a lot of trades including oil and bulk cargo transportation. It should be noted, however, that even these Letters o Indemnity are usually accepted, thee can be serious consequences of this non-performance.
The P&I cover will be prejudices should the cargo be delivered against such Letter and claims arise in connection with mis-delivery of the cargo. That is why it is considered absolutely essential to get the correct wording of the Letter; it is also critically important for the Members to ensure that there are proper procedures in place and implemented for demonstration of compliance with the Letter.
All counter party risks concerned with accepting a Letter shall be considered as well. In fact, the Letter is only as secure as the party that provides it. It is now quite normal practice to have an LOI and deliver a cargo without Bill of Lading, though it is not recommended. However, the original bills may not be available in many cases due to the delays in documentation and other issues.
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