Managing Problems In Sea Transport Related To The Delivery Of The Cargo: Letters Of Indemnity Vs. Bills Of Lading

One of the main issues in bulk shipping is the delivering of cargo. Usually when discharging, this is done without the production of the bill of lading. This is the case where the letter of indemnity appears and facilitates the whole procedure of cargo delivery. The modern structure of the international sea-borne trade (i.e. new technology, new production areas, speed) coinciding with banking delays and a universal slowing up of postal services, has resulted in the peculiar situation where ships are likely to arrive at the discharging port or ports before the necessary documents. Sometimes, more frequently in oil trades, cargoes are bought and sold while still on board. Ship-owners are found in the very difficult position of what to do when the vessel arrives at the discharging area and the bill of lading is not presented. Possible cures would be the 'waybill' which can be used in place of the bill of lading and the letter of indemnity which has become custom of the trade as an unavoidable mean of being able to trade the cargo up until the very last moment of discharge.