Ship agents have been advised to exercise caution when signing unusual letters of indemnity.
The International Transport Intermediaries Club (ITIC) has highlighted the growing practice among some shipowners to absolve themselves of liability by asking agents to sign letters as a resuirement of the International Ship and Port Security (ISPS) Code.
The ITIC has advised ship agents that the ISPS Code does not require them to sign letters of indemnity.
The body said: “Owners often attempt to obtain this type of letter of indemnity from parties boarding the ship, such as surveyors, engineers, working gangs, students, cadets and even P&I personnel. It is not usual or reasonable, however, for this type of letter of indemnity to be signed by port agents, nor is it a requirement of the ISPS Code.”
The practice was highlighted by a recent case in which a shipowner asked an agent to sign a letter (a) agreeing not to claim against the owner, regardless of the owner's responsibility in the matter, negligent or otherwise; and (b) agreeing to indemnify and insure the owner against any claims and expenses resulting from the performance of the services provided by the agent.
