Selecting your Storage Company
Considerations for Choosing a Storage Tank
If you’re in the market for a new storage tank, you’ll probably have a few questions, such as:
Tier 1 or company who leases storage to resell?
Is the payment fiduciary valid?
Are there fees not disclosed yet charged?
What is the significance of a tank’s coating?
louišP Exports’ team is here to provide you with the data you will need when selecting the right storage. No matter the port, we will always have an expert or associated legal expert for that region who can navigate the selection and work to ensure financial protection on the transaction.
The storage tank farm sector of the commodities industry is not immune to risks, including scams that can have serious financial and operational consequences. Below are a few of the concerns a buyer should be aware of when entering into a relationship with a Tank Farm/Logistics Company.
Fake Product Scams
One common scam involves the sale of fake or substandard diesel fuel. Fraudsters may adulterate EN590 with cheaper or lower-quality substances to cut costs, while still marketing the product as compliant with the standard. This can result in significant engine damage and increased emissions, undermining the integrity of the storage facility’s operations.
Theft and Misappropriation
Theft is a persistent issue in storage tank farms. Scammers might siphon off diesel fuel or divert it to unauthorized buyers. In some cases, employees or contractors may be involved, exploiting access to storage tanks to steal fuel or falsify records to cover up their activities.
Misleading Documentation
Inaccurate or fraudulent documentation is another risk. Scammers may forge certificates of conformity or manipulate inspection reports to falsely certify that EN590 meets the required standards. This misrepresentation can lead to regulatory violations and damage to the facility’s reputation.
Supply Chain Fraud
Supply chain fraud involves collusion between different parties in the distribution network. For instance, scammers might manipulate invoices, overstate quantities, or alter delivery records to embezzle funds or divert products. This type of fraud can be difficult to detect but may result in significant financial implications.
Technical Manipulations
Scammers may also engage in technical manipulations, such as tampering with measurement instruments or monitoring systems. This can lead to inaccurate reporting of fuel quantities or quality, facilitating theft or allowing substandard fuel to be passed off as compliant EN590.
Some of the procedures louišP Exports incorporates into our oversight of your transaction:
Implement Rigorous Security Measures
Enhancing physical and digital security is crucial. This includes installing surveillance systems, restricting access to authorized personnel, and employing tamper-evident seals on storage tanks. Regular security audits can help identify vulnerabilities and prevent unauthorized access.
Adopt Robust Quality Control Procedures
Regular testing and inspection of EN590 fuel are essential to ensure compliance with standards. Utilizing third-party laboratories for independent verification can provide an additional layer of assurance. Implementing stringent quality control measures at every stage of the storage and handling process helps maintain the integrity of the product.
Foster Transparency and Accountability
Maintaining transparent and accurate records of all transactions, inventories, and inspections is vital. Implementing a digital management system can streamline documentation processes and reduce the risk of forgery or manipulation. Regular audits and reconciliations can help detect discrepancies early.
Educate and Train Staff
Providing ongoing training for staff on recognizing and preventing fraud is essential. Employees should be aware of common scam tactics and understand the importance of adherence to protocols and reporting suspicious activities.
Strengthen Supply Chain Oversight
Establishing strong relationships with trusted suppliers and contractors, as well as conducting thorough due diligence, can help mitigate supply chain fraud. Regularly reviewing and verifying documentation and invoices is also crucial for preventing fraud.
Collaborate with Regulatory Authorities
Engaging with regulatory bodies and industry groups can provide valuable insights and support in combating fraud. Staying informed about regulatory changes and best practices helps ensure compliance and reduces risk.
Contact us now to discuss the port you are looking to obtain the storage in and let one of our experts guide you through the process which mitigates these risks and maximize your ease of success on each transaction.