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LOI - Ship Shore Difference

This letter requests that the ship's master sign bills of lading containing the shore figures for cargo loaded rather than the ship's figures, as there is a dispute over the accurate quantity loaded. It acknowledges signing such bills would not misrepresent the cargo given the dispute and unknown details qualified in the bills. In exchange, the requestor agrees to fully indemnify and hold harmless the ship owners for any liability, loss, damage, expense, or costs associated with complying with the request, including defending any proceedings, providing security to prevent arrest or detention of vessels, and removing any interference with vessel use. The requestor also agrees English law will govern the indemnity.

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214 views

LOI - Ship Shore Difference

This letter requests that the ship's master sign bills of lading containing the shore figures for cargo loaded rather than the ship's figures, as there is a dispute over the accurate quantity loaded. It acknowledges signing such bills would not misrepresent the cargo given the dispute and unknown details qualified in the bills. In exchange, the requestor agrees to fully indemnify and hold harmless the ship owners for any liability, loss, damage, expense, or costs associated with complying with the request, including defending any proceedings, providing security to prevent arrest or detention of vessels, and removing any interference with vessel use. The requestor also agrees English law will govern the indemnity.

Uploaded by

sidsail
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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LOI for Ship / Shore Difference

Letter of Indemnity

[date]

To: The Owners and Disponent Owners of the “[insert name of Ship]”

Ship: [insert name of Ship]

Voyage: [insert names of load port(s) and discharge port(s)]


Cargo: [insert quantity and grade]

Bill of lading: [insert date and number of BLs]

Charterparty: [insert Charterparty date and parties]

Description of the bona fide dispute: The above Cargo was loaded on the above Ship
at the port(s) of [port] on [date]. On completion of loading, the Ship’s figure for the
quantity of Cargo loaded was [volume]cbm ([weight]mt) (“the Ship’s Figures”) but the
shore figure for the quantity of cargo loaded was [volume]cbm ([weight]mt) (“the Shore
Figures”).

We, [insert name of party making request], hereby request you to instruct the Ship’s
Master to sign, or to authorize the Ship’s agents to sign, bills of lading marked “Weight,
measure, quality, quantity, condition, contents and value unknown” in respect of the
Cargo containing the Shore Figures rather than the Ship’s Figures.

We agree and acknowledge that in light of the bona fide dispute set out above and the
qualifications in the draft bills as to the unknown weight, measure, quality, quantity,
condition, contents and value of the Cargo, (1) it is lawful for you to comply with our
request, (2) in doing so neither you nor the Master will be making any
misrepresentation regarding the Cargo, and (3) your acceptance of this LOI and
compliance with our request is without prejudice to the bona fide dispute referred to
above and your right to assert that the Shore Figures are incorrect.

In consideration of your agreement to comply with our request notwithstanding the


bona fide dis- pute referred to above,

WE HEREBY UNDERTAKE as follows

1. To indemnify you, your servants and agents and to hold all of you harmless in
respect of any liability, loss, damage or expense of whatsoever nature which you
may sustain in connection with our request and/or any compliance or attempted
compliance with it.
4.
2. In the event of any proceedings being commenced against you and/or any of your
servants or agents in connection with our request and/or any or attempted
compliance with it, to provide you or them from time to time with sufficient funds to
defend the same.

3. If, in connection with our request and/or any compliance or attempted compliance
with it, the Ship, and/or any other vessel or property in the same or associated
ownership, management
or control, should be arrested or detained or should the arrest or detention thereof
be threatened, or should there be any interference in the use or trading of the Ship
or other vessel or property (whether by virtue of a caveat being entered on the
Ship’s and/or other vessel’s registry or otherwise howsoever), to provide on
demand such bail or other security as may be required to prevent such arrest or
detention or to secure the release of the Ship, other vessel or property or to
remove such interference, and to indemnify you in respect of any loss, damage or
expenses caused by such arrest or detention, or threatened arrest or detention, or
such interference, whether or not such arrest or detention or threatened arrest or
detention or such interference may be justified.

4. The liability of each and every person under this undertaking shall be joint and
several and shall not be conditional upon your proceeding first against any person,
whether or not such person is party to or liable under this undertaking.

5. This undertaking shall be governed by and construed in accordance with English


law, and each and every person liable under this indemnity shall at your request
submit to the jurisdiction of the High Court of Justice in London.

Yours faithfully,
For and on behalf of [insert name of Requestor]
The Requestor

..............................
Signature

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