This agreement is concluded in general terms, with no specific reference to a sector, and also applies to the services sector; In this article, we examine the different stock models currently used in India, the common challenges they face and some proposals to overcome opportunities. Warehousing is aging in India. Read more Subletting: Most user storage contracts do not allow subletting. However, if the space in the warehouse for storing goods is taken by secondary users, the contract must authorize it. This is typical of contract storage, where the storage space stored in the warehouse is subdivided and leased to secondary users. The sublease clause must also be accompanied by appropriate provisions allowing the primary user to set up delimited storage spaces for goods stored by the secondary user. If the construction of shelves is an example, other more specialized forms of delineated storage space/containers may also need to be installed in the space. These must also be included in the treaty. Fees and deposit: The cost of using the storage facility is usually based on the area rented by the user. Storage in the warehouse can be (i) bulk storage/soil storage or (ii) rack storage. Storage costs are increased at the end of each year. Users may also be required to pay a processing fee, which is in addition to storage costs. Handling costs include ordinary machinery and machinery that are used to receive goods in the warehouse, store goods and return goods to the storage door.
Operators may require the user to pay a specific minimum work tax for the goods. Warehouses also require users to deposit an estimated amount in advance as an interest-free deposit. This amount usually corresponds to three months of storage costs and is refunded to the user in warehouses on vacation. The storage and storage of goods is a common approach in the economy and it is always necessary to put such regulations in place through appropriate documentation and on the basis of pre-defined commercial conditions. Storage area: The rented area in a warehouse is usually calculated in square metres. Operators may require the user to rent a minimum area in the warehouse. Users may intend to use this space for storing their own goods. You can also use the space, subject to the appropriate agreement with the operator, to store goods from third-party users under a separate agreement. This model would allow the user (“primary user”) to link an area inside a warehouse and distribute the space to be distributed to small businesses (“secondary user”). In such agreements, the primary user may ask the operator to make appropriate changes (for example. B the installation of special shelves or storage or transload spaces, etc.) within the rented area/warehouse, in order to meet the specific requirements of secondary users. Small businesses find it economical to rent the necessary space in a warehouse instead of building their own space or renting an entire warehouse.
These premises can be rented in both public and public warehouses. The warehouse operator can operate the warehouse himself or use an external logistics partner. In the previous article in the series, we looked at the different stock models in India. In this article, we examine the main conditions of a storage agreement between the operator and the user of a warehouse.