Letter of Indemnity – Dos and Don’ts

loi

Many of you might have heard the term Letter of Indemnity (LOI) in day to day shipping practice..

There have been several arguments, discussions, commercial threats, litigation etc surrounding this LOI..

But many still have doubts on what an LOI is, when it can and should be used, whether it is legally enforceable and whether it is worth the paper it is written on..

I will try to answer these questions in this article..

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Transnet procedures for hazardous cargoes in South African ports

dangerous goods declaration

As has been covered across various articles on this site, the process of hazardous cargo approval, acceptance and shipment is quite complex and ALL stakeholders involved in the shipment of this highly specialised cargo must be fully aware of the requirements..

This cannot be repeated enough..

From pre-shipment approval, approval of shipment, movement to port of load, loading on board, precautions while at sea, discharge at destination, movement to place of delivery, every process required to be followed by the IMDG Code must be followed at all times..

Seemingly there are several cases of non-compliance and non-adherence in this regard, based on which, Transnet, the State Owned Enterprise in South Africa responsible for all port operations has amended its Handling and Transport of Dangerous Cargoes National Procedures..

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Transnet shares concerns on incorrect labelling of hazardous containers

All about hazardous cargo

Undeclared or misdeclared hazardous goods (Dangerous Goods) have been the bane of many vessel operators and shipping lines since the start of carriage of hazardous goods on ships..

The incidents created due to this issue has been increasing over the years with 9 major maritime disasters recorded in 2019 alone and as per TT Club, a containership is involved in a major fire every 60 days..

As per a statement issued by the Office of the Chief Harbour Master, Transnet National Ports Authority has identified the following risks and challenges that have emerged in the past years which requires immediate attention..

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What is a HS Code..??

What is HS Coder

You would have seen this terminology called HS Code across many trade documentation or correspondences..

What does this HS Code mean, who uses it and what is it used for..??

HS Code stands for Harmonized Commodity Description and Coding System..

This is the common standard worldwide for describing the type of commodity..

Every commodity that enters or crosses most international borders have to be declared to customs by means of a HS code.. This helps in standardizing the commodity codes worldwide..

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The hazards of Ammonium Nitrate and 100 years of related disasters

ammonium nitrate - oxidizer - shipping and freight resource - beirut explosion

On the 4th of August 2020, a devastating explosion ripped through the port of Beirut killing more than 135 people and injuring at least 4,000+..

As per news reports, the explosion is said to have originated from a storage facility which was storing about 2,750 tons of Ammonium Nitrate (NH4NO3)..

This article highlights the characteristics of Ammonium Nitrate and the disasters that this chemical has caused over the last 100 years..

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Do I need cargo insurance for my shipment..??

cargo insurance - shipping and freight resource

Cargo insurance is a type of insurance that protects a buyer or seller of goods against damages or loss of cargo..

Despite insurance having been around for centuries, there is still a feeling that any form of insurance is a “grudge purchase” and in the case of cargo shipments, many people ask the question “Do I need cargo insurance for my shipment“..??

By its nature, insurance is an intangible benefit, one that can only be tested under adverse circumstances and there is nothing more adverse than cargo damage..

From a

• Local (Street to Street, City to City, Town to Town etc)
• Provincial (Within the same province or state etc)
• National (Province to Province, State to State etc)
• Global (International trade between countries)
• Regional (Within regional trade blocs like EU, BRICS etc)

there are several modes and types of trade/shipments around the world..

Where there is a shipment, there is a possibility of cargo damage and where there is the possibility of cargo damage………………….

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Digitalisation of Chinese Freight Industry – research report

Opinion Piece

A research report by Paul Zhang, Founder & CEO of FreightPaul, a Chinese digital freight forwarder explores the digital landscape among Chinese freight companies including the various digital tools used by these companies..

The report outlines the process of digitalization in the freight industry of China and how usage of digital tools such as cloud computing, data analytics, and artificial intelligence techniques is enhancing the service of transportation and speeding up the process of movement of goods from warehouses and factories to the final consumers.

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Fonterra completes first blockchain trade transaction using Wave’s BL

Press Release - Shipping and Freight Resource

Fonterra, one of the world’s leading international dairy processors, has completed its first e-presentation for a shipment from New Zealand to China using WAVE BL’s blockchain-based technology with HSBC as the banker.

This fully digital end-to-end Letter of Credit presentation, in which digital documents were cryptographically signed and presented using WAVE BL’s platform, is an example of the regular flow of documents between companies and banks during the international exchange of goods.

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Findings of the Maersk Honam fire by TSIB – what really happened..

maersk honam TSIB report

On the 6th of March 2018, Maersk Honam, one of Maersk’s ultra-large containerships caught fire in the Arabian Sea while en-route from Singapore to Egypt..

The Singapore registered container ship which was carrying 7860 containers encountered a severe fire that started from no.3 cargo hold about 900 nautical miles west of the coast of India..

Five crew members eventually perished in this incident which was one of several containership disasters that have happened in recent history..

The Transport Safety Investigation Bureau of Singapore (TSIB) conducted the investigation into the fire on board the Maersk Honam and here is what they found..

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Contour partners with CargoX to transform bills of lading

Press Release on Shipping and Freight Resource

Contour, the Singapore-based global trade finance network has today announced its partnership with CargoX, a blockchain platform for transferring documents and data including a certified electronic bill of lading solution.

The news follows Contour’s transition to full production, with the network supporting electronic bills of lading as part of digital transformation of trade.

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