Assistance in Issuing Letters of Guarantee
Assistance in Issuing Letters of Guarantee
One of our most important roles is to assist in the placement of Club Letters of Guarantee when security is demanded, normally by cargo interests for alleged cargo damage/loss, but also by local port authorities for physical damage to port installations and/or pollution.
In all cases our immediate 24 hour availability, action and swift communication with Clubs and their Members is vital to prevent vessel arrest or detention on completion of operations.
The form, text and amount of such LoG’s for cargo damage depends largely on the source of the demand with some cargo interests insisting on their own particular content, competence and language whereas others are prepared to compromise and consider the requests of Club’s and Owners, especially regarding the applicable law and the question of bank guarantee issue. Letters of Guarantee to cargo interests may either be issued by the Clubs or by ourselves in certain cases, particularly by our local offices directly to local receivers or underwriters.
Letters of Guarantee required by local Port Authorities are less flexible particularly in West African ports where neither the sum demanded nor the content of the undertaking are normally open to discussion.