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Warehousing Agreement
I need a warehousing agreement for a third-party logistics provider to store and manage inventory for a period of 12 months, with provisions for monthly inventory audits, liability coverage for damaged goods, and a 30-day termination notice period.
What is a Warehousing Agreement?
A Warehousing Agreement sets out the terms when one business stores goods for another in their storage facility. It's commonly used by logistics companies, manufacturers, and retailers across New Zealand to manage their inventory and distribution needs.
The agreement covers key details like storage fees, handling procedures, insurance requirements, and liability limits under NZ's Contract and Commercial Law Act. It also outlines important operational matters such as access hours, security measures, stock reporting, and how damaged or lost goods will be handled. For many Kiwi businesses, these agreements form the backbone of their supply chain operations.
When should you use a Warehousing Agreement?
Use a Warehousing Agreement anytime your business needs to store goods in someone else's facility, or when you're offering storage space to others. This becomes essential when expanding operations beyond your own storage capacity or when setting up distribution networks across New Zealand.
The agreement protects both parties when inventory volumes increase, seasonal storage needs arise, or specialized handling requirements come into play. It's particularly important for businesses dealing with temperature-sensitive goods, high-value items, or those needing to meet specific storage compliance standards under NZ regulations. Having clear terms in place helps prevent disputes and ensures smooth logistics operations.
What are the different types of Warehousing Agreement?
- Fixed-Term Storage: Basic Warehousing Agreements for set periods, ideal for seasonal inventory or project-based storage needs
- Flexible Storage: Agreements with variable space allocation and rolling terms, suited for businesses with fluctuating inventory
- Specialized Handling: Custom agreements for temperature-controlled goods, hazardous materials, or items requiring specific security measures
- Full-Service Warehousing: Comprehensive agreements including picking, packing, and distribution services
- Cross-Dock Agreements: Short-term storage arrangements focused on quick transfer between transport modes
Who should typically use a Warehousing Agreement?
- Warehouse Operators: Companies or individuals providing storage facilities, responsible for maintaining the space and ensuring proper handling
- Business Owners: Those needing storage solutions for their inventory, products, or materials
- Logistics Managers: Oversee the day-to-day operations and ensure compliance with storage terms
- Commercial Lawyers: Draft and review agreements to protect both parties' interests under NZ law
- Insurance Providers: Offer coverage for stored goods and may require specific terms in the agreement
How do you write a Warehousing Agreement?
- Storage Details: List exact space requirements, location, and any special handling needs like temperature control
- Service Scope: Define which services are included (storage only, picking/packing, delivery) and operating hours
- Pricing Structure: Gather rates for storage space, handling fees, and any additional services
- Insurance Coverage: Document required insurance levels and liability limits under NZ regulations
- Access Protocol: Specify who can access goods, security measures, and notice requirements
- Duration Terms: Decide on agreement length, renewal options, and termination conditions
What should be included in a Warehousing Agreement?
- Party Details: Full legal names and addresses of warehouse operator and customer
- Service Description: Clear outline of storage services, handling procedures, and operational hours
- Payment Terms: Storage rates, additional charges, payment schedule, and late payment consequences
- Liability Clauses: Risk allocation, insurance requirements, and damage/loss procedures
- Term and Termination: Agreement duration, renewal options, and exit conditions
- Compliance Section: References to relevant NZ storage and safety regulations
- Dispute Resolution: Process for handling disagreements under NZ jurisdiction
What's the difference between a Warehousing Agreement and an Agency Agreement?
A Warehousing Agreement differs significantly from an Agency Agreement, though both play important roles in business operations. The key distinctions lie in their purpose, scope, and legal obligations under New Zealand law.
- Primary Function: Warehousing Agreements focus on storage and handling of physical goods, while Agency Agreements establish a relationship where one party acts on behalf of another
- Legal Responsibility: Warehouse operators take custody of goods but don't have authority to sell or modify them; agents can make binding decisions for their principals
- Risk Management: Warehousing focuses on physical security and proper storage conditions; agency relationships center on fiduciary duties and decision-making authority
- Duration Structure: Warehouse agreements typically run for fixed terms based on storage needs; agency relationships often continue until specific goals are achieved or terminated by either party
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