* Industry association sends letter to NYSE Liffe after
* Two warehousekeepers say main complaint is rent limit
By Sarah McFarlane
LONDON, April 29 European coffee and cocoa
warehouse companies want NYSE Liffe to temper strict new
warehousing rules designed to prevent logjams, the industry
association said on Tuesday.
Warehousing has been controversial in metals markets for
years and more recently in coffee and cocoa, where supplies have
been locked down for months in queues while warehouse owners
collect the rent.
In January NYSE Liffe announced changes to its cocoa and
coffee grading and storage rules, which including a limit on how
long warehouses can charge rent when delivery or transfer of
stock is delayed.
Some warehouse owners are unhappy with the rule changes and
have sent a letter to NYSE Liffe after seeking legal advice.
"We sent a letter yesterday to the exchange with a list of
proposed changes to the new rules they have implemented," Enrico
Antonj, chairman of the European Warehousekeepers Federation
(EWF), told Reuters.
The IntercontinentalExchange (ICE), which owns NYSE Liffe,
declined to comment on whether it had received the letter or
would be willing to consider the EWF's proposals.
The new rules force warehouses to stop charging rent for
goods that have not been moved within 60 days after a request is
made and require additional information to justify warehouse
Two warehousekeepers familiar with the matter said that the
60-day limit was one of the main complaints warehouses had with
the new rules. The warehousekeepers said that one of their
proposals was a longer time limit before being forced to stop
"There was something there and it had to be addressed but
things have gotten overdone," said a coffee and cocoa
warehousekeeper. "There must be some adjustments to the new
The new rules follow ICE's acquisition of NYSE Liffe,
including the London-based cocoa and robusta coffee contracts in
Warehouse storage rents and load-out rates have sparked
controversy as coffee and cocoa markets started mimicking
business models used in metals markets.
Manufacturers needing raw materials like aluminium have long
complained they had to wait months and pay dearly to get metal
from some warehouses overseen by the London Metals Exchange
around the world.
Both the LME and the ICE exchanges are trying to tackle
hoarding activities in metals and softs markets.
Last month the London Metal Exchange's (LME) plans to cut
logjams in its global warehouse network with some similar rule
changes were derailed by Russian aluminium producer Rusal
winning a court decision to halt the reform because
consultations had been "unfair and unlawful".
The LME said on Monday that it planned to seek permission to
appeal against the court ruling.
(Reporting by Sarah McFarlane; Editing by Veronica Brown and