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Contract barrels storage

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Hi Folks,

Anyone offering contract barrel storage with an actual contract?

Interested to know if prior agreements with customer about loss rates, transfer of title, etc., are part of your storage arrangement.

For example:

(1) unlicensed/un-permitted third party brand owner pays for distillation and Transfer in Bond of barrels to your distillery. Does title transfer to you?

(2) licensed/permitted third party brand owner runs out of storage space, TIB of barrels to you from some DSP (maybe their own). Does title transfer to you?

(3) are you dumping, gauging, and refilling upon receipt of TIB so you and the customer have an agreed upon number for starting proof gallons to calculate loss rates? Or do you use original gauge and gross weight upon receipt only and everyone learns the total loss rate when the barrel is dumped?


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  • 2 weeks later...

It is not industry standard (to my knowledge) for storage agreements to gauge barrels for transfers in bond. 


Almost every large scale storage only operation is usually not liable for loss or leaks via contractual protections. Usually worded somewhere along the lines of taking reasonable best action to identify problematic inventory but not liable for losses. 


If your business is to handle barrel storage for other people, protect yourself from losses up front contractually and charge for all your time on the account (sample pulls etc.).

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