The BIMCO Compact Seminars are a series of Face-to-Face training sessions that offer a focused exploration of key topics from BIMCO's renowned Masterclasses.
In this session, we will cover the essential role of Letters of Indemnity (LOIs) in commercial shipping. LOIs are widely used across the industry to facilitate cargo operations in situations such as missing original bills of lading or discrepancies between ship and shore figures.
Throughout this seminar, you will better understand LOIs, including their purpose, when and why they are issued, and the risks involved. We’ll cover crucial topics such as the issuance of clean bills despite cargo concerns, the complexities of “Rain LOIs,” and when an Owner may refuse a Charterer's LOI. You’ll also learn how to mitigate financial risks with effective LOI wording and security measures.
Additionally, we will address P&I Club coverage and the legal considerations surrounding LOIs, providing insights into potential disputes and the enforceability of these instruments.
Discounts
10% group discount is available for registering 3 or more participants from the same company. Cannot be combined with any other discount.
What will you learn?
09.00 - 09.45 Introduction to Letters of Indemnity (LOIs) in Commercial Shipping
- Overview of LOIs: What they are and why they are standard practice in commercial shipping.
- Delivery of cargo without the original bill of lading, clean bill issuance despite cargo concerns, and discrepancies between ship and shore figures.
- Rain LOIs
- When can an Owner refuse a Charterer’s LOI
- Duration and cancelling of LOIs
09.45 - 10.15 Session 2: Understanding Standard P&I Club Wordings and Risks
- Standard P&I Club LOI wordings: Explanation of the standard LOI wordings issued by the International Group of P&I Clubs (IG), and when they apply.
- Risk of Disputes: Potential for disputes when LOI wordings are unclear or not specified in the charter party.
10:15 - 10:45 Break
10:45 – 11:45 Reducing Exposure When Providing an LOI
- The need for Back-to-Back LOIs: the “Miracle Hope” case
- Reducing Financial Risk: Using additional security, such as international bank counter-signatures, to mitigate risks.
- When must an Owner accept an LOI? Understanding the owner's predicament.
- Effective LOI Wording: Key tips on how to word an LOI to limit exposure.
11:45 – 12:45 P&I Coverage and Legal Considerations for LOIs
- P&I Club Coverage: Understanding why LOIs typically fall outside standard P&I cover and the reasons for exclusions.
- Additional Cover and Assistance: How P&I clubs can help review LOI wording and provide tailored additional coverage for risks associated with LOIs.
- Legal Considerations: Reviewing the enforceability of LOIs and understanding the legal risks charterers may face.
12:45 – 13:00 Closing Remarks
Why Choose to Participate?
In the fast-paced and complex world of commercial shipping, staying ahead of evolving industry practices is crucial. The BIMCO Compact Seminars offer a unique opportunity to gain concentrated, high-quality training in a short, focused format. Designed for professionals who need practical insights without a significant time commitment, this programme provides an efficient way to enhance your expertise on key maritime topics, such as Letters of Indemnity (LOIs) in commercial shipping.
BIMCO, as a leading global organisation, has long been at the forefront of developing essential maritime agreements, including a comprehensive suite of charter parties and bills of lading. With decades of experience and expertise, BIMCO plays a pivotal role in shaping the legal and operational framework of the shipping industry. By participating in this seminar, you gain access to the latest best practices, backed by BIMCO’s extensive knowledge and understanding of the intricacies that drive maritime commerce.
How will this course help your professional development?
Whether you're dealing with complex issues around LOIs, P&I Club coverage, or minimizing financial exposure in shipping contracts, this focused training will provide you with practical tools and real-world solutions. By joining, you ensure that you're not only learning from the best but also investing in the future of your professional development within the maritime industry.
Course certification
Participants will be given the option of receiving a Certificate of Attendance upon request.
Course materials
BIMCO issues electronic course files as an Adobe PDF file enabling you to make personal notes. All documentation and presentations will be in English. Course access details will be provided once the registration is completed.
Note
Coffee breaks are included in the course fee.
Accommodation and transportation are not included and must be arranged individually.
