Letter of Indemnity (LOI)
A promise to cover a carrier's loss for doing something its rules do not normally allow.
It is most often used to release cargo when the originals are lost, or to switch a bill of lading. The carrier usually insists on its own wording.
For lost originals, a bank usually has to countersign the LOI. The guarantee is commonly for 100% to 200% of the cargo value and lasts around six years, which is the time limit for a claim. Getting that bank guarantee is the slow and expensive part, not the carrier's paperwork.
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