On Oct. 12, UK LME issued new charge caps for period 2024 - 2025.
UK LME published Notice 23/181 on the new charge caps for the period 2024 to 2025.
Follows UK LME Nov. 2022 requested submission Apr. 2022-Mar. 2023, see #122920.
Charge Caps Overview
On Oct. 12, 2021, UK LME issued notice setting out maximum rents and FOT charges applicable to LME listed warehouse warrants for period Apr. 1, 2024-Mar. 31, 2025.
In Notice 16/320, of Sep. 28, 2016, LME announced that it would implement charge capping on headline rates for both the rent and free-on-truck (FOT) charges levied.
The new Charge Caps remain unchanged from those applying for 2023 to 2024 period.
Under clause 5.3.6 of Warehouse Agreement, a warehouse may challenge any Charge Cap on basis it does not adequately take into consideration a relevant increase in cost.
Any warehouse wishing to challenge any of the 2024/2025 Charge Caps may submit written challenge to UK LME within fourteen calendar days of the publication of Notice.
Effectiveness
These new charge caps will now apply from Apr. 1, 2024 through to Mar. 31, 2025.
Nov. 2023 Challenges to Proposed Charge Caps
On Nov. 29, 2023, UK LME updated on warehouse rent, FOT charges 2024 to 2025.
LME received two challenges to charge caps, which special committee rejected, so warehouses are notified to submit rent and FOT charges for requested period.
Follows, Nov. 2021, UK LME requested submission for Apr. 2022-Mar. 2023, #122920.
Warehouses are reminded of clause 5.4.3 of the Warehouse Agreement.
No warehouse maximum charge level submitted pursuant to clause 5.4.1 or 5.4.2 may be higher than corresponding charge cap, and LME may revise any excess submitted.
Warehouses are requested by LME to submit their rent and FOT charges for the period Apr. 1, 2024 through Mar. 31, 2025, by Dec. 15, 2023.
If LME does not receive 2024/2025 warehouse maximum charge levels by Dec. 15, 2023, LME will consider rent and FOT charges as submitted from the previous year.
Oct. 2024 Charge Caps 2025-26
On Oct. 14, 2024, UK LME published the charge caps for Apr. 1, 2025 to Mar. 31, 2026.
According to UK LME, charge caps remain unchanged from 2024/2025 as per LME Notice 23/222, published on Nov. 29, 2023, further to two challenges at the time.
Warehouses may submit their written challenge to UK LME within fourteen calendar days from publication of this Notice, which is by close of business Oct. 28, 2024.
Regulators
UK LME
Entity Types
B/D; Depo; Exch
Reference
Nt 24/262, 10/14/2024; Nt 23/222, 11/29/2023; Nt 23/181, 10/12/2023; Nt 16/320, 9/28/2016
