Back Letter
Also known as: back letter, letter of indemnity, loi
A letter of indemnity issued by a shipper to obtain a clean bill of lading despite known cargo discrepancies.
A Back Letter is typically requested when cargo condition would otherwise require adverse remarks on the bill of lading. The shipper provides indemnity to the carrier for potential claims arising from issuing a clean document. While commercially used in certain trades, it carries legal and insurance risks. Carriers must exercise caution, as courts may invalidate indemnities that conceal known defects.
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