Letter of Indemnity (LOI)

What is a Letter of Indemnity (LOI)?

A Letter of Indemnity (LOI) is a document contractually obligating the shipper to take responsibility for any loss or damage resulting from a breach of contract (like the terms and conditions of a bill of lading).

When is an LOI necessary?

Flexport will require an LOI if the consignee is receiving cargo without the presentation of an endorsed original bill of lading; i.e. if the shipment is released with a telex release. The LOI confirms that Flexport can release the goods to the consignee without the original bill of lading.

Ocean carriers may also require an LOI for some shipments containing lithium batteries.

What should an LOI cover?

An LOI should identify the shipment, the parties and the specific action requested, such as releasing cargo without the original bill of lading. The signer accepts responsibility for any claims that result. Because an LOI creates a legal obligation, review the wording with your legal team or forwarder before you sign. Carriers may also require their own templates.

Back to the full glossary.