Auction houses are prestigious, reputable entities where record-breaking art deals take place. They attract serious art owners and investors with bulletproof security arrangements and a premium level of service available to all clients. This applies to fine art logistics solutions as well; many auction houses handle this aspect on their own as a reward to clients for their loyalty. Here’s how auction houses handle high-value logistics, and what can go wrong, illustrated with Christie’s case study.
How Auction Houses Handle High-Value Art Logistics: Key Aspects
The logistics process of auction houses starts long before the auction. The first step involves art objects’ intake, assessment, and thorough condition reporting for liability purposes. Insurance coverage for the art object while in the auction house’s custody is organized at this stage, typically set at 2% of the reserve price.
Artwork’s cataloging for sale is impossible without provenance research and authentication. Professionals assess the piece to identify any potential legal or restitution concerns, with due diligence conducted to ensure the artwork’s authenticity. Once the check is completed, specialist cataloging and valuation take place.
Custom packing and crating of the artwork heading to an auction house is a must. Physical protections are engineered individually for each piece, often with custom-built wooden crates for antiques and fragile ceramics, sculptures, and archeological artifacts. While awaiting transportation, art objects are stored in specialized, climate-controlled facilities. Auction houses also deliver premium-level transportation services for the sold artwork; they have an in-house team or partner with reliable companies to provide dedicated logistics with fully equipped art shuttles, alarm systems, and GSP tracking to guarantee full safety and security for precious art assets. Installation, international customs and legal compliance help, and post-sale collection management may also be included in the auction house’s service package on demand.
Field Testing by Hurricane Sandy
Christie’s case offers an instructive, cautionary example of the importance of carefully planned art storage logistics. The auction house was one of the first to provide specialized storage services for its clients starting in 1984. Its 100,000 square feet warehouse in London was equipped with cutting-edge climate-control and security systems. Christie’s signed a 50-year lease contract with a warehouse in Red Hook, Brooklyn, in 2008 to expand its storage service coverage to the USA. The building was renovated, opening in 2010 as a superior-grade art storage. Yet, in 2012, Hurricane Sandy ruined dozens of art objects in the Red Hook building, exposing numerous inherent vulnerabilities of engineering structures. The auction house suffered huge losses, teaching other storage providers a valuable lesson about disaster preparedness and professional-grade security.