Common Tank Storage Scams to Watch Out For

Booking tank space should give you peace of mind, not a pit in your stomach. Yet traders and cargo owners report losing deposits, facing bogus fees and chasing nonexistent capacity. Spotting red flags early can save weeks of headaches and significant costs. Here’s what to look for before you sign on the dotted line.

1. Phantom Capacity

The terminal advertises ample tanks, you wire a deposit, then the phone goes silent. Often the operator never had free capacity—those tanks were already spoken for. Always confirm physical inspections and call the terminal’s operations desk directly to verify availability.

2. Hidden Fees and Surprise Demurrage

Your quote covers monthly tank rent, but not handling charges, seal fees or demurrage if you miss a tight offtake window. Those add up fast. Ask for a full fee schedule in writing and review past invoices to see how costs have trended.

3. Quality and Cleanliness Claims

A provider promises “certified clean” tanks for multiple products—but delivers after a dirty wash. Contamination can ruin your shipment and trigger costly rejetting. Insist on independent surveyor reports and verify cleaning logs before delivery.

4. Double Booking Schemes

Two clients think they each have sole use of the same tank. When both arrive, one gets turned away or forced to swap. Require a tank allocation certificate stamped by the warehouse operator and confirm with your broker as well.

5. Unauthorized Subleasing

A “broker” resells space that the terminal never approved. You deal with an intermediary who vanishes when trouble hits. Go direct with the terminal or insist on a sublease agreement signed by the tank owner.

6. Fake Terminal Addresses

Emails show an address near major pipelines, but satellite imagery reveals no tanks. Use mapping tools to confirm terminal existence and drive by whenever possible before sending funds.

7. Paperwork Forgery

Lease agreements look official, complete with letterhead and signatures—yet they’re photocopies with forged seals. Ask for original documents or notarized copies and cross-check signatories with corporate registries.

8. Title and Permit Issues

Storage sites require environmental permits and fire-code certificates. A fraudulent operator may lack approvals, exposing you to fines or forced product removal. Request copies of local permits and confirm status with regulatory agencies.

9. Unclear Ownership of Tanks

You think you’re dealing with the terminal owner, but it’s a middleman with no legal rights to sublet. Verify ownership through land records or ask for a direct confirmation letter from the asset owner.

10. Upfront “Processing” Fees

Scammers demand non-refundable processing fees before any lease documents. A legitimate terminal will secure a minimal deposit against a signed contract, not a hefty fee with no paperwork. Keep any upfront payment on escrow until you get fully executed agreements.