To support the mechanism of physical delivery the LME approves and licenses a network of warehouses and storage facilities around the world. Warehouse companies must meet strict criteria before they are approved for the handling of metals.
LME-approved delivery points are located in areas of net consumption and logistical hubs for the transporta tion of material.
Rent and FOT rates and charges
LME warrant holders are responsible for the payment of charges for storage of material in LME-approved storage facilities.
The LME does not own or operate the warehouses, nor does not it set the rates charged for rent or handling. These are matters of commercial negotiation between a warehouse company and its clients. The exchange does however publish the maximum rental charges and free on truck (FOT) rates provided by the warehouse companies.
For the storage and handling of LME non-ferrous metals, minor metals and steel billet for the period 1 April 2015 to 31 March 2016 the following rates will apply:
From time to time the LME commissions independent studies into various aspects of warehousing and delivery.
Reporting of Inducements and charges to the LME
More than 650 storage facilities across 38 locations approved for good delivery of LME contracts.