Bunker Indemnity Letter

A Bunker Indemnity Letter is a legal document where a shipowner or charterer promises to compensate a supplier for any costs or damages if a vessel’s fuel (bunker) causes issues or damages during supply. It essentially protects the fuel supplier from financial loss due to problems like contamination or damage linked to the bunkers provided. This letter ensures the supplier has assurance that they won’t bear the financial risk, and it clarifies who is responsible if something goes wrong during the fuel supply process.