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Freight Forwarding & Incoterms: Key Terms Explained in Detail

Discover the essential freight forwarding terms and Incoterms that define responsibilities, risks, and cost-sharing in global trade. This glossary provides clear, practical explanations to help you navigate documentation and operational decisions with confidence.

Letter of Indemnity

Last updated: January 12, 2026
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The load port is the origin port where goods are loaded onto a vessel for export. It marks the starting point of the ocean leg of a shipment’s journey. At this port, cargo is received, processed, and transferred from land-based transport onto the ship. The load port plays a key role in setting the shipment in motion.

At the load port, several important activities take place, including cargo inspection, documentation checks, and customs export clearance. Containers or cargo units are staged, weighed, and prepared according to the vessel’s loading plan. Efficient handling at the load port helps avoid delays and ensures the vessel departs on schedule. Proper coordination between terminals, carriers, and logistics providers is essential.

The load port is often referenced in shipping documents such as Bills of Lading, booking confirmations, and export declarations. It defines the point where responsibility and risk may transfer, depending on the agreed trade terms. Accurate identification of the load port is crucial for route planning, compliance, and freight calculation.

Overall, the load port is a critical node in international shipping. It connects inland supply chains to global trade routes. By ensuring smooth loading operations and proper documentation, the load port supports reliable and efficient export movements.

FAQ

Frequently Asked Questions about Letter of Indemnity

Clear answers to the most common questions people have when learning about Letter of Indemnity.

It identifies where cargo is loaded onto the vessel and helps define routing, risk transfer points, and compliance requirements.

Not necessarily. Goods may originate inland and be transported to a different port before being loaded for export.

Cargo undergoes export clearance, inspection, staging, and loading onto the vessel according to the ship’s schedule.