The Importance of Letters of Indemnity in Shipping & International Trade – What You Need to Know
The Importance of Letters of Indemnity in Shipping & International Trade – What You Need to Know
 
4.30pm - 6pm SGT
Webinar

The Importance of Letters of Indemnity in Shipping & International Trade – What You Need to Know 

25 August 2022 | 4.30pm - 6pm SGT | Webinar

Overview

Letters of Indemnity (“LOIs”) are commonplace in international trade and shipping, and feature ever so often in the performance of International Sales Contracts and Charterparties. But what are the various contexts in which they surface? What is the mischief that they are designed to address? 

Loh Wai Yue will start off this session by addressing, amongst other things, the following questions: 

  • Who ordinarily issues LOIs, to whom are LOIs issued, and pursuant to what types of contractual arrangements? 
  • What are the acts to be performed by the beneficiary at the request of the issuer, in exchange for which the issuer is required to provide an LOI?
  • What kinds of third-party liabilities does the obligation to indemnify under the LOIs ordinarily extend to? 
  • What are the problems that one may encounter when it comes to enforcement of the LOIs? 

He will introduce (or refresh, in appropriate cases) these general concepts, accompanied by an examination of recent developments in case law having an impact on these issues, as well as practical tips to note when advising on the wording and issuance of LOIs.

Ian Teo and Maureen Poh will then take us through the impact of LOIs on commodities traders. Particularly in the oil trade, there may be long chains of buyers and comparatively short ocean voyages where the ship carrying the cargo arrives at the discharge port before the bills of lading (“B/Ls”) are made available to the cargo receiver. Often that is because the cargo has been sold and resold and there has simply been insufficient time for the B/Ls to make their way through the banking chain as they are negotiated from one letter of credit provider to the next. 

In these circumstances, 2 types of LOIs are commonly issued. First, a shipowner may be asked to deliver the cargo to the cargo receiver (without production of B/Ls) against a LOI issued by the charterer to the shipowner to indemnify the latter (“Discharge LOI”). Second, in order to obtain payment under the sale contract or the credit, a seller/beneficiary may present a LOI to the buyer/applicant or the financing bank and undertake to provide the B/Ls as soon as they are received (“Payment LOI”). 

Both speakers will discuss recent court decisions on whether/how LOIs affect the financing, letters of credit and the use of B/Ls in the commodities trade. 
 

Programme

04.15pm SGT

Participants to log in

04.30pm SGT

 

 

Presentations by:

  • Mr Loh Wai Yue, Joint Managing Director, Incisive Law LLC Singapore
  • Mr Ian Teo, Managing Director, Helmsman LLC Singapore
  • Ms Maureen Poh, Director, Helmsman LLC  Singapore
05.30pm SGT

Panel Discussion and Q&A moderated by Mr Ian Teo, Managing Director, Helmsman LLC Singapore

06.00pm SGT

End of webinar

Click here to view the brochure.
 

Registration

Register here.
Webinar price: SGD 96.30. SAL members may utilise credit dollars (C$).

 

SILE Attendance Policy

Number of Public CPD point: 1.5
Practice Area: Admiralty Practice/ Shipping
Training Level: General

Participants who wish to obtain CPD Points are reminded that they must comply strictly with the Attendance Policy set out in the CPD Guidelines. For this activity, this includes logging in at the start of the webinar and logging out at the conclusion of the webinar in the manner required by the organiser, and not being away from the entire activity for more than 15 minutes. Participants who do not comply with the Attendance Policy will not be able to obtain CPD Points for attending the activity. Please refer to http://www.sileCPDcentre.sg for more information.

L I F T E D by SAL
 


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For enquiries regarding this event, please email [email protected].