LOI (Letter of Indemnity)
Letter of Indemnity(LOI) is a legal document used in the logistics industry to protect parties involved in a transportation contract from potential financial losses. It is typically issued by a shipper or consignee when they want to ship cargo without presenting a Bill of Lading, which is a document required for cargo shipments. LOI serves as a guarantee that protects the carrier against potential financial losses that may arise due to the absence of a Bill of Lading. In other words, it is a form of insurance that protects the carrier from legal action or financial losses that may arise when cargo is shipped without a Bill of Lading, especially in cases where the Bill of Lading is lost or delayed.
Source : ChatGPT