What is loading out from LME warehouses? And what is not?

Warehouse companies, their clients and their owners are looking closely at one clause in the London Metal Exchange’s new policy on the approval and operation of warehouses that defines what qualifies as a load-out.

Under the LME’s current set of rules, there is no official definition of a load-out, “although a delivery to a consignee outside the premises of the warehouse company is the usual practice”, Oliver Wyman noted in its warehousing logistics review in November. Under the new proposal, which is due to come into effect in June, a consignment needs a bill of lading or another document issued to the warehouse by a carrier in order to meet the LME’s stipulated minimum load-out requirement. In addition, the recipient named on that document cannot be an LME-authorised or off-warrant warehouse in the same delivery point where the material is loaded out, if those sheds are owned or operated by the warehouse loading out the metal – or a company in the same group. Supporters of this addition to the rules argue...

Published

February 05, 2015

12:05 GMT

London