Tradewinds reports that we may see a second wave of storage deals for the tanker market.
While it remains to be seen whether this scenario plays out – there are a multitude of legal considerations for owners and charterers.
Most charterparties do not contain storage clauses, or have clauses which are legally or practically deficient when considering long-term storage. There are also numerous practical issues that can give rise to varying legal issues as a consequence of an order for a vessel to be used for floating storage, such as cargo degradation, insurance coverage and hull cleaning.
We considered these and many other issues in our recent client alert, which can be found here.