Recently, many utilities have considered interim dry storage of spent nuclear fuel as an option for increasing spent fuel storage capacity. Foreign nuclear regulatory committees have provided some regulatory and licensing requirements for relatively low- and medium-burned spent fuel with respect to the prevention of spent fuel degradation during transportation and interim dry storage. In the present study, the effect of cladding creep and hydride distribution on spent fuel degradation is reviewed and performance tests with high-burned Zircaloy-4 and advanced Zr alloy spent fuel are proposed to investigate the effect of burnup and cladding materials on the current regulatory and licensing requirements. Creep tests were also performed to investigate the effect of temperature and tensile hoop stress on hydride reorientation and subsequently to examine the temperature and stress limits against cladding material failure. It is found that the spent fuel failure is mainly caused by cladding creep rupture combined with mechanical strength degradation and hydride reorientation. Hydride reorientation from the circumferential to radial direction may reduce the critical stress intensity that accelerates radial crack propagation. The results of cladding creep tests at $400^{circ}C$ and 130MPa hoop stress performed in this study indicate that hydride reorientation may occur between 2.6% to 7.0% strain in tube diameter with a hydrogen content range of 40-120ppm. Therefore, it is concluded that hydride re-orientation behaviour is strongly correlated with the cladding creep-induced strain, which varies as functions of temperature and stress acting on the cladding.