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2011 Copyright Reserved
GLOBAL FORWARDING PARTNERS
OPERATING MANUAL
“THE CARING NETWORK ACROSS THE GLOBE”
“PARTNERSHIP THRU PRO-ACTIVE DEVELOPMENT”
1
CHAPTER PAGE
1. WHAT IS GFP?
2. RULES AND REGULATIONS
3. PAYMENT NETTING SYSTEM
4. MEMBERSHIP
5. GFP MASTER PLAN (GFP-M01)
6. LIABILITY & INSURANCE
7. INTERNATIONAL RULES & CONVENTION
3 – 21
22 – 26
27 – 38
39 – 52
53 – 72
73 – 85
86 – 110
TABLE OF CONTENTS
2
WHAT IS GFP ?
3
GFP is ……A non profitable Organization established
to counter globalisation
A forum to protect its members
Your One Stop Logistics Centre
GFP IN PURSUIT OF TECHNOLOGICAL ADVANCEMENT
4
WHY GFP?
GFP - WORLD CLASS IN LOGISTICS MANAGEMENT
5
Stronger Global Representation
(Strategic Alliances)
Common Identity, Better Bargaining Power.
Basic Concepts:
Legal & Liability Regime for Multimodalism
MTO B/L & AWB Contract of Carriage
Limiting Liability thru Group Insurance
Your Convenient Network
GFP - MEETING RIGOROUS STANDARDS
6
WHAT DO I GET?
GFP - LEADER IN INFORMATION TECHNOLOGY
7
Secured Payment (Thru Payment Netting System)
Service With Security
MNC Tender Biddings’ Participation
Advertisement in Global Magazines
Group Liability Insurance
Foster Greater Dedication & Cohesion
Reducing Traveling Time and Costs
Common Information Webpage (CIW)
GFP – FOSTERING SMART PARTNERSHIP
8
System Management SoftwareOn-Line Booking
Enhanced Market promotion
Inter-Member Communication
Service Contract Rates with Major Carriers
Members’ Code of Conduct
(Standard Operational Procedures-SOP)
GFP – TAKES METICULOUS CARE
9
MISSION STATEMENT***********************************
“ TO FOSTER DEDICATION & COHESION
AMONG ITS MEMBERS & TO REMAIN
COMPACT, COMPETITIVE, PROFITABLE
YET DYNAMICS”
10
GFP PHILOSOPHY*******************************************
“ TO MEET THE EVER DEMANDING
EXPECTATIONS OF ALL MEMBERS IN
TANDEM WITH GLOBALIZATION”
11
VISION STATEMENT********************************
“TO BE A WORLD CLASS MULTIMODAL
TRANSPORTATION SYSTEM”
12
LEGAL & LIABILITY REGIME
CODE OF CONDUCT
Members’ Accreditation Criteria
Willful Misconduct
Performance Level
GFP RULES & REGULATIONS
Enforcement & Adherence
Standard Trading Conditions ( STC)
13
INSURANCE COVERAGE
EACH PARTNER MUST HAVE STANDARD TRADING
CONDITIONS & DEMONSTRATE ANNUAL AUDIT
ACCOUNTS
CREDIT LIMIT IS SUGGESTED AT $4000 PER MEMBER
PER MONTH SUBJECT TO A MUTUALLY SIGNED
AGENCY AGREEMENT
GFP A REGISTERED BODY BY LAW
Registered in Brunei 2006
Administered by GFP Chairman, Board & Secretary
Bank Account in London
14
INTERNATIONAL RULES & ACTS
Hague Rules, Hague-Visby Rules
Hamburg Rules & Other Unimodal Transport Conventions
The Himalayan Clause
Warsaw Convention Act
The Transport Road Act
Carriage of Goods by Air Act, COGSA, COGWA
Rail Transport Act
15
MEMBER’S ACCREDITATION CRITERIA
**************************************************
No Criminal/ Bad Records
A Minimum Of 3 Years In Business or 5
Years Experience
Known Background, A Minimum Paid Up
Capital Of US$50,000
Bank Guarantee for new members
(To be ascertained by the Board)
16
GROUP-WIDE SERVICES ARE QUALITY ASSURED
Members must be capable of providing the following range of
services and support activities on a global basis namely:-
AIR ROAD NVOCC
SEA RAIL CUSTOMS BROKER
PROJECT MANAGEMENT WAREHOUSING
17
IN ORDER TO MAINTAIN & DEVELOP QUALITY PROGRAM :-
All Members’ Performances are Strictly Monitored & Controlled.
All Non-Conformances’ are Monitored, Reported & Acted upon to Prevent
Recurrence.
Members’ Staffs are Continuously Trained & Retained
Regular Internal and Eternal Audits on Quality Standards are Conducted.
Conduct Regular Audits on Members Performance with its Customers.
Regular Reports on Services Development.
18
SYSTEM MANAGEMENT
DIRECT CONNECTIVITY
Direct EDI Interface amongst all members enabling
Speedy Import Clearance and the Export Recording with
the capability through its own Software Development to
access & clear shipments on a real time basis from any of
GFP stations. In addition, a direct computer linkages with
Major carriers enabling Instant Access to Cargo Status,
Space Booking Rates and etc. This shall give GFP
customer even more rapid and error free processing and
clearance of in/out bound traffics together with
streamlined handling. The system shall accurately
collates and records data in the multimodal transport
regime.
19
GLOBALWIDE COVERAGE
GFP aspire to Operate with Key Operational Centers
throughout the world.
Along with our EDI Linkages, we shall have the
operational capabilities in major cities on par if not better
than other MNC forwarders.
PROVISION OF VALUE-ADDED SERVICES
Our Distinctive Standards are continuously raised through
Technical Innovation, tailor-made to meet with the evolving
requirement and improvement to the fullest satisfaction of
customers’ existing demands and future expectations. The
actual criteria on which qualities were judged are:-
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Service enhancements thru technological innovation &
sustained high level of quality of service
Improving customers’ competitive positions in the market
place thru “Value-Added Services.”
Customer endorsements from the new service products
Quality of communication with customers
Quality of staff training and education
Security Awareness.
21
RULES & REGULATIONS
22
RULES AND REGULATIONS
1. NAME
The name of the Association shall be Global Forwarding Partners.
2. REGISTERED PLACE OF BUSINESS
The registered place of business shall be at BRUNEI or at such other places as may from time to time be decided on by
the Board. This registered place of business shall not be changed unless prior approval is obtained from Registrar of
Company/Society in Brunei.
3. DEFINITIONS
In the construction of these Rules and Regulations made hereunder unless there be in the subject or context inconsistent
herewith, the following expressions shall have the following meanings:-
(a) “The Association” shall mean Global Forwarding Partners.
(b) “Firm” shall mean any Sole-Proprietorship, Partnership, Business Establishment, Limited Company or Corporation.
(c) “Member” shall mean any firm, for the time being, an Ordinary Member of the Association and shall include the
representative appointed by the Member.
(d) “Secretary” shall mean any person or firm for the time being Hon. Secretary General or Secretary of the Association.
(e) “Treasurer” shall mean any person or firm for the time being Hon. Treasurer or Treasurer of the Association.
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(f) “The Board” shall mean the board of the Association and shall include the office-bearers, unless such office-bearers are by
specification or by implication excluded in the context. The board of Directors consisting of not more than 5 members.
(g) “The Office” shall mean the Registered Place of Business of the Association.
(h) “Office-bearers” shall include the Honorable Chairman, the Honorable deputy Chairman, the Secretary and the Treasurer.
(i) “Register” means the Register of Members of the Association as provided for by these Rules.
OBJECTS
4.1. The objects for which the Association is established are:-
(a) To promote and to protect the common interest of the Members of the Association and particularly to enter into meaningful
consultations, discussions, dialogues, communications, exchanges and generally to co-operate and work with the carriers,
mnc shippers and or any public or private establishments, government, semi-government or authorities, boards,
organizations, corporations, associations, person or persons, port users and operators calculated to benefit the Members and
the Association.
(b) To support and enhance the status of Members of Global Forwarding Partners.
(c) To foster greater co-operation, understanding and communication amongst Members.
(d) To gradually evolve a code of conduct among Members, the observance of which will improve the overall quality, competency
and efficiency of their service so as to enhance their reputation and public images and to encourage high business ethics,
standards and practices amongst the Members.
(e) To exchange and disseminate information of interests to all Members.
(f) To provide a forum for discussion pertaining to all matters and questions affecting the interests of Members and the Freight
Forwarding industry and to agree on concerted action and to make representations on matters of interests affecting the
Members and the Association to local authorities, statutory bodies, government and other organizations worldwide.
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(g) To undertake human resources development, academic, vocational and educational programs and to set up establishments
for training of all personnel in logistical chain and such other related services for the Members, their employees, staff and the
public particularly on matters related to the Freight Forwarding industry.
(h) To provide such commercial, industrial, business and trade services to the Members and the Association as an entity in the
operation of their enterprises as an extended support.
4.2. The means by which there objects shall be achieved may be as follows:-
(a) By framing and establishing rules for observance in matters pertaining to the conduct of the Members.
(b) By promoting, supporting and or discussing legislation affecting the Members and for such purposes to make
representation to any relevant parties outside the Association and to take such steps and proceeding as may be expedient.
(c) By providing means related to questions affecting the interests of Members and to initiate, watch over, petition and take
whatever action which may be desirable in relation to legislative or other matters affecting the Members.
(d) By establishing liaison with the carriers, any official (Governmental or otherwise), organization or person, that will be of
benefit to the Association.
(e) By taking such measures as the Association thinks fit for the arrangement, regulations and improvement of facilities with
regard to the Freight Forwarding and generally to promote goodwill among the members of the Association, increase its
representatives worldwide and augment to improve the facilities with which the Freight Forwarding trade may be conducted
without interference with the actual conduct of business of the Members.
(f) By subscribing to, becoming a Member of and co-operating with any other association, whether incorporated or not, whose
objects are altogether or in part similar to those of the Association, and by obtaining from and communicating to any such
association such information as may be likely to forward the objects of the Association.
25
(g) By purchasing, taking on lease or in exchange or hiring or otherwise acquiring any real and personal estate which may be
deemed necessary or convenient for any of the purposes or the Association.
(h) By printing publishing any newsletters, periodicals, books or leaflets that the Association may think desirable for the
promotion of its objects.
(i) By investing any monies of the Association not immediately required for any of its objects, in such manner as may from time to
time be determined.
(j) By doing all other such lawful things as are incidental or conductive to the attainment of the above objects, or any of them.
4.3. All monies and profits accruing to the Association whether from the participation in any business, interests, rent collection or
income of any other nature shall be applied solely towards the furtherance, promotion and execution of the objects of the
Association and no portion thereof shall be paid by way of dividend, bonus or profit to any Member of the Association, provided
that nothing herein expressed or contained shall prevent the payment in good faith or remuneration or expenses of both to any
officer, employee or servant of the Association or to any Member of the Association or other person or persons for services
actually rendered by him or them to the Association. Any member be it terminated or expelled shall not be entitled to any claim
from the Association’s fund.
26
PAYMENT NETTING SYSTEM
27
WHAT IS PAYMENT NETTING SYSTEM ?
28
The purpose for the PNS is to centralize control all inter-members’
accounting settlements structured specifically for a uniform, neat,
accurate and timely payment.
Payment Netting is an easy and effective financial mechanism. It
eliminates banking charges, such as bank transfer, currency
exchange loss and is hassle free. It prevents late payment and
restrict members payment exposure no more than 40 days (except
for disputed cases (To be decided upon by the Board) settlement no
later than 60 days).
The System requires each & every member to submit their S.O.A. to
the PNS Centre. The PNS centre will collate collectively as to who
owes who. Upon reconciled a final amount is determined &
reconfirmed by each member as to their individual outstanding to the
Group as a whole. Each partner will “pay or receive”
only ONE AMOUNT each month. By paying or
receiving, the outstanding with various
members can be cleared in one single transaction.
29
WHY PNS ?The netting system has been created to coordinate
and to centralize control the flow of money which is
circulating within the GFP in the most healthiest and
safest way.
30
WHAT ARE THE BENEFITS?
1. Guaranteed Payment
2. Group outstanding under control
(Able to identify & to prevent payment flaw instantly thus
reducing the Group’s credit exposure)
3. Save on bank charges
4. Reducing currency exchange losses
5. Simple, easy & flexible method
6. Centralize control payment within the group
7. Healthy cash flow
8. Accurate, Consistent & Reliable
9. Easy settlement when outstanding is small
31
WHO IS THE PNS CENTRE ?
PNS CO-ORDINATOR : SECRETARY
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Rule No. 1
The settlement of freight & charges are based on the Carrier’s ETD and
NOT the date of invoice.
Example : 28th September – 26th October are payable in the November
payment netting
Rule No. 2
For large freight collect or DDP shipments, upfront charges, custom
duties/taxes, members has the flexibility to dictate for an advance payment
so as to avoid negative cash flow unless both parties agree to settle
thru PNS.
Rule No. 3
a. Maximum Credit Limit : USD 4,000 (above that, between members
mutual agreement).
b. (i) Maximum Credit Period : 30 days
(ii) If a traffic is secured jointly where a credit term is given longer than
30 days the centre must be notified accordingly. The payment for this
particular account will be brought forward to the respective month
mutually agreed.
PAYMENT SETLLEMENT RULES
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c. (i) All invoices must be settled within the netting month.
(ii) Thereafter a finance charge will be imposed.
(iii) For disputed invoice, members must settle the amount not in dispute
until the board has made a judgement, no later than 60 days from the
date of invoice.
d. Failure to comply to the PNS payment schedule will be subjected to an
interest rate at 0.05% per day.
Rule No. 4
a. Bank Guarantee will be needed (to be determined by the board) for
members who default payment for more than once.
b. All S. O. A – must be submitted within the stipulated time frame for the
approval. A PN report will be e-mailed to all netting members by the
centre. Members must notify the centre should a dispute or irregularity
occurs within 6 days after receiving the report failing which, the centre will
not entertain any disputed claim.
c. The PNS procedures are not negotiable.
34
Rule No. 5
a. The Board at its discretion is empowered to add, alter or amend the rules
deem necessary for the benefit of the Group.
b. The Board’s judgement will be final. Appeal can be brought up during the
AGM or EGM.
Rule No. 6
All Settlement must be either in USD or in EURO currencies.
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PNS MONTHLY CALENDAR 2005
Member
send SOA to
Centre
1st Date
27th October Centre
provide 1st
reconciled
report
2nd Date
2nd November
Member tally
/reconfirm
/dispute
acceptance
3rd Date
8th November
Final report
(confirmation
) of S. O. A
4th Date
10th November
Payment
Day
5th Date
15th November
Total Payment Day = 29 days
(Invoice date from 28th September – 26th October
*SOA = Statement Of Accounts
CENTRE
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PNS Procedures
a. The monthly calendar must be observed at all times. Each month, there
are 5 important dates to conform with strictly.
b. 1st Date – Member must send an S. O. A. to the Centre – indicating the
amount owed to or owed by other members.
c. 2nd Date – The Centre will provide reconciled report based upon your
SOA indicating the exact amount confirmed O.K. to pay and those in
dispute (not O.K. to pay). Members are given 5 days to double check & to
reconcile with other members to avoid disputes.
d. 3rd Date – Member must reconfirm acceptance, and disputed invoices (if
any) to the Centre & to update any corrections or additions to the
previous S. O. A.
e. 4th Date – A final report will be generated by the Centre. This is also the
cut off date where all differences are expected to be cleared & agreed by
all parties. The report will indicate your position either you are paying or
receiving.
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f. 5th Date – the BIG Payment Day, where all parties can look
forward to clearing their settlement timely & amicably.
g. The entire payment cycle is at 29 days. However the success of
this Payment Netting rely on the full cooperation from all members
to provide an “accurate & timely report”.
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MEMBERSHIP
39
5. ELIGIBILITY FOR MEMBERSHIP
Ordinary Membership of the Association shall be opened to all firms worldwide carrying on businesses as international freight
forwarders. Each geographical locality shall be limited exclusively to only one member per location.
6. APPLICATION FOR MEMBERSHIP
Every application for membership shall be made in writing as per Form A signed by the applicant and sponsored by an
introducer (who shall be a Member) and addressed to the respective Director (according to its geographical locality), of whom
shall table the application to the Board for approval. The Applicant (upon approval) shall T.T (Bank Transfer) the membership fee
amount equivalent to one year subscription before full admission can be granted.
In the event the introducer shall, before the applicant comes up for election cease to be a Member, another introducer must be
substituted by written notice to the Secretary.
7. ADMISSION TO MEMBERSHIP
An application shall be admitted to membership by a majority of two-thirds of the Board Members voting in favour of the
applicant admission.
An applicant whose application has been refused, or who has not been admitted for whatever reasons, cannot be proposed
again until after the expiration of six months from the disposal of the previous application. The Board shall have the absolute
discretion to accept or refuse any application for membership of the Association without assigning any reasons whatsoever.
An applicant whose application has been refused may, through his introducer and any Board member/s who is/are dissatisfied
with an election decision, appeal to an Extraordinary General Meeting to reconsider the case. Such meeting shall, if required be
convened through telephone or email. At such meeting the Board may, if so desired, address the meeting or may request the
Chairman to read out a written statement in support of the applicant’s appeal. The decision of the Board shall stand unless
countermanded by the members based on a majority of two-third. The decision shall be final and binding on such applicant.
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8.1. EFFECT OF ADMISSION AND MEMBERSHIP
Immediately after the admission of a new member, notice shall be given to him/her and he/she shall be furnished with a copy of the
rules and regulations.
On becoming a Member, the firm must inform the Secretary in writing, of the name of two persons who are authorized to represent
the Member at meetings. In the event of a Member wishing to change his representative the Secretary must be informed, in writing,
before any meeting.
8.2. VOTING RIGHTS OF MEMBERS
(a) Each Ordinary Member shall be entitled to one vote each at all General Meetings and at any other meetings of the Association
where voting is called for. Voting at all General Meetings of the Association shall be by a show of hands of those present.
(b) The Chairman shall also have the right to exercise a casting vote in addition to his normal vote in the event that the votes are
tied.
9.1 TERMINATION OF MEMBERSHIP
A member shall cease to be a Member of the Association if: -
(a) The Member goes into voluntary liquidation or enters into any scheme of arrangement with the creditors, or if it is a sole
proprietorship or a partnership, the sole-proprietor or a partner of the partnership has had a receiving or adjudicating order in
bankruptcy made against the sole-proprietor or a partner of the firm.
(b) The subscriptions of the Member are in arrears of one month after it has become due, whether demanded or otherwise. Despite
the above, the Board may at its entire discretion, extend such membership but any member whose subscriptions are in arrears
for two months after the same has become due, shall cease forthwith to be a member.
(c) A notice in writing should be sent to the Secretary that member has resigned provided that the Member so resigning shall be
liable to pay all arrears of subscription and other dues by him at the date of so ceasing to be a Member or face legal action.
(d) Member has been expelled from the Association as provided for in Rule 10.
MEMBERSHIP
41
(e) All benefits provided herein by the Association shall ceased to exist automatically.
9.2. OUTSTANDING FEES
Notwithstanding anything in these rules: -
(a) A Member who has been terminated under any of the aforesaid rules cannot apply for re-admission unless all arrears in
subscription outstanding at the time of termination are paid in full before any application for membership can be considered
and approved by the Board.
(b) A Member whose membership is terminated under rule 10 shall be fully liable for all arrears of subscription and such other
dues to the Association.
10. EXPULSION OF MEMBERS
(a) If a member in the opinion of the Board fails to conform to any of the Rules and Regulations of the Association, or is guilty
of conduct injurious or detrimental to the interests of the Association of calculated to bring the Association into disrepute, or
has willfully or persistently refused or neglected to comply with the rules and regulations or fails to abide by any resolution
passed by a two-third majority or a resolution passed at a Board meeting duly convened or fail to abide by any resolution
passed at a General Meeting of the Association duly convened, the Board may serve notice by registered letter inviting the
Member to resign from the Association within a time specified in the letter.
(b) The invitation to resign shall only be issued if two-thirds of the Board present at a duly convened meeting for such purposed
vote in favour of so doing. At such meeting the Member who is to be invited to resign may, if so desired, be permitted to
address the meeting or may request the Chairman of the meeting to read to the meeting a written statement with reference
to the matter under complaint.
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(c) In default of such resignation the Board may decide the question of his expulsion at a Board meeting duly convened for such
purposes. If not less than two-thirds of those present at such Board meeting shall vote for his expulsion, he shall thereon
cease to be a Member of the Association. Any person/s who is/are dissatisfied with such a decision of the Board may appeal
to an Extraordinary General Meeting to reconsider the case. Such meetings shall, if required be convened once a year
during the AGM. At such meeting the person/s may, if so desired, address the meeting or may request the Chairman of the
meeting to read out to the meeting a written statement in support of his/their appeal. The decision of the Board shall stand
unless countermanded by a majority of two-third of the Members present at such Extraordinary General Meeting directing
the Board to re-instate the person/s as a Member/s, the same to take effect from the date of the said Board meeting. All
decisions of the Extraordinary General Meeting on the matter shall be final and binding on such person/s.
(d) Any Member who has been expelled may not be proposed for re-election for a
period of one year from the date of his ceasing to be a member.
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11. MEMBERSHIP FEE
The membership fee shall for the time being be (US DOLLARS SIX HUNDRED & FIFTY ONLY) payable yearly in advance
respectively
on 1st October. Where a Member shall for any reason cease to be a Member during the year, the subscription payable for that
year shall be non refundable. New members will be required to pay a full year non refundable membership fee. Regardless of any
day of the month shall be calculated as a full month of membership. The subsequent year shall be based on a pro-rata calculation
to coincide with 1st Octoberr. The entrance fees may, from time to time be determined by the Members during the general
meeting.
MEETINGS
12. MANAGEMENT, GENERAL MEETINGS
The management of the Association is vested in a general meeting of the Members, who will elect office-bearers and a Board to
organize and supervise the daily activities of the Association and to make decisions on matters affecting its running when the
general meeting is not sitting.
13. ANNUAL GENERAL MEETING
A General Meeting of the Association shall be held once a year and the Secretary shall give not less than sixty days’ notice to
every Member, stating the place, day and hour or such meeting.
Business at Annual General Meeting
The business at the Annual General Meeting shall be as follows: -
(i) To adopt the Agenda.
(ii) To receive the Report of the Board for the previous financial year together with a duly audited statement of the
accounts of the Association for that period.
(iii) To elect if the election is due the principal office-bearers comprising of a Chairman, a Deputy Chairman, two Vice
Chairman ,an Honorary Secretary-General and a Treasurer for the ensuing year.
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(iv) To elect if the election is due not more than 4 other Board members for the ensuing year.
(v) To appoint Auditors for the ensuing year.
(vi) To transact any other business relating to the affairs of the Association of
which notice has been given in accordance with these Rules.
(b) Notice of Special Business or Regulations
Any Member, having special business or regulations to bring forward at the Annual General Meeting shall give notice in writing of
such special business or resolutions to the Secretary fourteen days prior the AGM, and the Secretary shall give five clear days’
notice of such special business or resolutions to the Members.
(c) Chairman at Meeting
The Chairman of the Association or in his absence the Deputy Chairman or in their absence a Vice-Chairman (to be chosen from
the two V.Ps) shall take the chair, and in the absence of the above persons, a Chairman for the meeting shall be chosen from
among the Members.
(d) Quorum at General Meeting
At all General Meeting the number required to form a quorum shall not be less than 25% of the membership, attending in person
or by proxy, or double the number of Board members whichever the lesser. If the requisite quorum is not present within half an
hour from the time appointed for the meeting, the meeting shall stand adjourned for half an hour, and if the quorum is not present
half an hour after the time appointed for the postponed meeting, the Members present shall constitute a quorum and the meeting
shall proceed with the business for which the meeting was called. Notwithstanding the above, such an adjourned meeting without
the quorum as mentioned aforesaid should not have powers to alter the Rules of the Association or to make decisions affecting
the whole membership.
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(e) Voting by Proxy
Members shall be entitled to vote at all General Meeting by Proxy, if a proxy is demanded. Each member is entitled to
appoint one (1) person to be his proxy. Each member is allowed to carry one (1) proxy. The Proxy Form, (Form E as
prescribed or as amended by the Board from time to time), duly completed as required must be deposited at the office at
least twenty four hours before the commencement of the Meeting.
(f) Extraordinary General Meeting
The Board may at any time call an Extraordinary General Meeting and they shall, within fifteen days after receipt of a written
request signed by not less than 15% of the Members of the Association and specifying the purpose for which the meeting is
to be called, summon an Extraordinary General Meeting and in either case written notice stating the purpose of the meeting
shall be given to each Member fourteen days prior to the date for which the meeting shall be called provided that in case of
urgency the Chairman or the Deputy Chairman may summon an Extraordinary General Meeting on short notice. A certificate
under the hand of the Chairman or its Deputy to that effect shall be conclusive of the fact that an emergency exists.
(g) Quorum at Extraordinary General Meeting
Paragraph (d) of this rule regarding the postponement of a general meeting shall apply also to an extraordinary general
meeting, but with the proviso that if no quorum is present after half an hour from the time appointed for the postponed
extraordinary general meeting requisitioned by Members, the meeting shall be cancelled, and no extraordinary general
meeting shall be requisitioned for the same purpose until after the lapse of at least six months from the date thereof.
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MANAGEMENT BOARD
14.1. THE BOARD
The Board which shall be elected at the alternate Annual General Meeting once every two years shall consist of a Chairman,
a Deputy Chairman, a Secretary and a Treasurer and not more than 3 other Board members, making the total in the full
Board not exceeding five (5) in numbers. The Board shall be entitled to do such acts within the framework of these rules
and regulations as they think fit to carry out the objects of the Association.
All Board members and any person performing executive functions in the Association MUST be a member for more than 12
calendar months.
14.2. DECISIONS OF THE BOARD
All decisions of the Board shall be decided by a simple majority of the votes cast in each case, unless otherwise stipulated in
the rules. Each Board member shall be entitled to one vote each at all Board meetings on each matter where voting is called
for. Voting at all Board meetings of the Association shall be by a show of Hands of those present. The Chairman shall also
have the right to exercise a casting vote in addition to his normal vote in the event that the votes are tied.
15. ELECTION OF BOARD
The election of the Board will take place in the following manners: -
(a) The Board shall notify the Members of the forth-coming election of the Board, including the office-bearers. Such
notification are to include particulars of the offices for contest and issued to the Members by 16th March in the
year where election of the Board, including the office-bearers, is to take place to allow for the registration and
nomination of candidates as provided hereunder.
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(b) All persons who desire to serve on the Board shall submit the form for “REGISTRATION TO CONTEST AS
BOARD MEMBER” (Form C) fully complete, the same to be deposited at the office 60 days before 1st August in
the year in which election of the Board shall be held. However, only Ordinary Members shall be eligible to contest
for the positions of office-bearers in the Association and provided always that only persons who are Members for
at least twelve months prior to aforesaid mentioned date shall be eligible to register to contest.
(c) Nominees for positions in the Board will submit the “NOMINATION FORM” (Form D) fully completed, the same to
be deposited at the office on or before 1st September following the Registration of persons who desire to serve on
the Board. Only persons who had submitted Form C in accordance with the Rules and Regulations will be eligible
to submit Form D, but such persons are entitled to contest one or more positions in the Board, provided always
that only Ordinary Members can contest the position of office bearer and a Member shall at any one time hold only
a single position in the Board. The office-bearers, sitting at a meeting for such purposes, may reject Forms that are
not fully completed as required and the decision of the office-bearers on such matters shall be final and
conclusive.
Notwithstanding the above, the Board may extend the period of registration and nomination, in the event of insufficient
candidates and on such an occasion the period allowed for registration and nomination shall be similarly extended by such
additional periods prescribed by the Board. Such extensions shall be duly notified to the Members.
(d) The election of the Board will be by a show of hands of the Members or by secret ballot at the Annual General
Meeting and voting shall be in accordance to Rule 8 (2). Only candidates who had submitted Form D in
accordance with the above will be eligible to contest for the positions they have nominated for.
48
16. MEETING OF THE BOARD
Quorum
The Board shall meet at least once a year, after seven days notice to the Board members, on such day and at such time as
may be most convenient, and at such other times as occasion may require. At any meeting of the Board at 50% of the Board
members shall be present to form the quorum. The Secretary shall call a meeting of the Board at any time when so
requested by the Chairman or Deputy Chairman or on receipt of a written requisition signed by any two members of the
Board with a statement of the business for which the meeting is to be called. Such meeting shall be called not later than four
days after requisition to the Secretary has been made and shall be held as soon as possible thereafter. The circular to
members of the Board calling the meeting shall state the business and by whom it is brought forward.
In the absence of the Chairman and the Deputy Chairman, the Board shall elect a Chairman from amongst themselves.
17. SUB-BOARD
The Board may from time to time appoint such sub-Boards as they may deem necessary or expedient for any specific
purpose and may depute or refer to them such of the powers and the duties of the Board, as the Board may determine. Each
sub-Board member shall be entitled to one vote each at all sub-Board meetings on every matter where voting is called for.
Voting at all sub-Board meetings of the Association shall be by a show of hands of those present. The Chairman shall also
have the right to exercise a casting vote in addition to his normal vote in the event that the votes are tied. Such sub-Boards
shall, as and when directed, submit their recommendations to the Board for adoption or otherwise and shall conduct their
business entirely under the direction of the Board.
49
1. Payment terms strictly 30 days from the date of invoice.
2. Bank charges (if T/T or wire) are to be paid by initiating/origin member.
3. Settlement of charges greater than USD 500 was mandatory. If less, subject to the negotiation of the respective
members settling the invoice.
4. The only exception to the payment terms was subject to mutual agreement between members for a specific large
account, where the payment terms may require longer or shorter than 30 day.
5. Every member MUST have a proper accounting system to enable proper communication amongst members.
6. If any amount is in dispute, members MUST pay the rest of the amount NOT in dispute first whilst waiting for the dispute
to be resolved. All dispute must be settled no later than 60 days and full payment must be made within this period.
7. Disciplinary measures regarding enforcement of standard payment terms would be under the authority of the GFP
Chairman and his/her board.
8. For jointly gained traffic, a profit split arrangement of 50-50 for both profits and losses will be standard amongst GFP
members.
9. For freehand traffic, no profit split is necessary unless the origin or controlling office agrees that the destination or
recipient office has earned a percentage of the profits subject to the agreement of both parties.
10. All members agreed to the importance of prompt payment among GFP members as well as the importance of
communication and responsibility to the terms and conditions set forth in the GFP charter.
ELIGIBILITY FOR MEMBERSHIP
a) Ordinary Membership shall be opened to all countries subject to The Board’s jurisdiction.
b) Each member can only represent one country unless it is approved by consensus on a certain exception.
c) There will only be a local member in a specific locality/city.
50
1. NEW MEMBERS
1.1 MUST COMPLETE INITIAL APPLICATION FORM
1.2 NEW MEMBERS SHOULD COME WITH RECOMMENDATION FROM WITHIN GFP
1.3 NEW MEMBERS MUST COVER AIR, OCEAN, ROAD AND WAREHOUSING.
NEW MEMBERS MUST PROVIDE DETAILS TO THE BOARD :-
I) COMPANIES PAID UP CAPITAL
II) COMPANY STRUCTURE, ORGANISATION CHART, TYPES OF SERVICES RENDERED
2. GFP MEMBERS
2.1 ALL MEMBERS WILL PAY MEMBERSHIP FEE OF USD 650.00 NOT LATER THAN 1st October/ EACH YEAR.
2.2 THE BOARD WILL ENSURE THAT AN ANNUAL GENERAL MEETING WILL BE HELD AT LEAST ONCE A YEAR.
EACH MEMBER MUST NOMINATE AT LEAST ONE REPRESENTATIVE OF EXECUTIVE LEVEL TO ATTEND THE
AGM. FAILURE TO ATTEND AN AGM WILL RESULT WITH A PENALTY OF USD 1000 MAX PER MEMBERSHIP
2.3 SHOULD ANY MEMBER BE REFUSED OR EXPELLED FROM THE GFP, THEY MUST REAPPLY TO THE
CHAIRMAN AS A NEW MEMBER SUBJECT TO THE BOARD’S JURISDICTION.
2.4 GFP MEMBER MUST HAVE THEIR OWN STANDARD TRADING CONDITIONS IN ACCORDANCE WITH A
RECOGNISED ASSOCIATION SUCH AS IATA/FIATA OR LOCAL ASSOCIATION.
2.5 EACH MEMBER MUST ENSURE THAT PAYMENT BY T/T (BANK TRANSFER) AFTER THE SOA HAS BEEN
RECONCILED BY BOTH PARTIES & FULL PAYMENT MUST BE REMITTED NOT LATER THAN 45 DAS FROM
DATE OF INVOICE.
51
2.6 EACH MEMBER MUST HIGHLIGHT ANY CHANGES PERTAINING TO THEIR COUNTRIES CUSTOM RULES &
REQUIREMENTS ALONG WITH AN OPERATIONAL FLOWCHART.
2.7 A MEMBER SHOULD ONLY REPRESENT 1 CITY, IN THE CASE OF A MEMBER HAVING OFFICES IN VARIOUS
COUNTRIES, THE MEMBER MUST APPLY TO THE BOARD FOR APPLICATION IN EACH.
2.8 THE BOARD SHOULD BE INFORMED SHOULD A PAYMENT DISPUTE OCCUR OR CANNOT BE RECONCILED
BETWEEN THE RESPECTIVE MEMBERS. THE BOARD AT ITS DISCRETION HAS THE RIGHT TO EXPELL ANY
SAID MEMBERS DERIVING FROM NON PAYMENT.
2.9 BEING A NON PROFITABLE ORGANIZATION, THE GFP AND ITS DIRECTORS ARE NOT LIABLE TO ANY CLAIMS
BE IT FINANCIAL LIABILITY OR CARGO LIABILITY.
2.10 EACH MEMBER MUST PROMOTE THE GFP GROUP EXTENSIVELY AND WHERE POSSIBLE DISPLAY THE GFP
LOGO THROUGH BUSINESS CARDS OR SALES LITERATURE AND ENSURE AGENCY AGREEMENT IN PLACE
WITH EACH MEMBER THAT HE IS WORKING WITH.
2.11 EACH MEMBER IS OBLIGATED TO PROMOTE AND TO DEVELOP BUSINESS AMONG THEMSELVES SO AS TO
FOSTER CLOSER WORKING RELATIONSHIP WITHIN THE GFP NETWORK.
2.12 MEMBERS MUST DEDICATE TRAFFIC TO OTHER GFP MEMBERS WITHIN A PERIOD OF TIME FROM BECOMING
A GFP MEMBER AND ARE PERMITTED TO CONTINUE TO HANDLE “ROUTED” TRAFFIC DESTINED TO OR
GENERATED BY NON MEMBERS. HOWEVER MEMBERS ARE OBLIGATED TO PROMOTE EXTENSIVELY AMONG
THEMSELVES. PRIORITIES FOR A GFP MEMBER MUST ALWAYS COME FIRST. THE GFP IS LIKE A PARTNERSHIP
PROGRAM OPERATING LIKE A FAMILY HELPING EACH OTHER. MEMBERS DESIRE SHOULD WANT TO STAY
AND GROW TOGETHER AND TO BE ABLE TO COMPETE AGAINST THE MNC IN TANDEM WITH GLOBALISATION.
GFP – GENERAL RULES (Revision 2011)
52
GFP MASTER PLAN (GFP-M01)
53
The First GFP Master Plan (GFP-M01)
outlining the perspective strategies and
programmes towards
54
1.STRATEGIC THRUSTS
Global Orientation
Enhancing Competitiveness
Improving Requisite Business
Foundation
Information-intensive & Knowledge
Driven Processes
55
2. ROLE OF GFP
Strategies & Programs to Enhance
Competitiveness
Group Knowledge-Based Development
As a Professional Body
56
3. OPPORTUNITIES
Critical Business Support Activities
Added Value Services
I.T. Support
Group Insurance, Advertisement
Global Tender Participation
57
4. PREROGATIVES
Objectives
Implementation
Recommendations
Market Trend
Corporate Governance
Regulatory Framework
Technology & E-Commerce
Training
58
STRATEGIC THRUSTS
Global Orientation
The logistics sector is required to focus on the changing
global market in particular, the supply chain and e-
marketplace. Efforts on developing a global marketing
capability to compete on Macro level and not only to rely
entirely on cost advantages.
59
Enhancing Competitiveness
The industry succumb by constant competition
requires continuous enhancement by focusing on
group development and productivity. To mitigate the
negative impact deriving from globalization requires a
planned imposition of limitations as well as a planned
schedule of progressive liberalization and reform based
upon our group strength & weaknesses.
60
The service sector is the Main economic driver purely
knowledge intensive and is an enabling tool for all
sectors. The need to enhance its efficiency and
competence (reduce cost) and to move up the Value-
Chain of activities especially to support an advanced
industries. Rapid advancements and convergence
environment in this instance will lead to efficiency gain
from the formidable increased global competition.
61
Improving Requisite Business Foundation
Will provide a focus on the development and
management of human resource, technology acquisition
and enhancing absorptive capacity, physical facilities and
equipments, supportive administrative rules/procedures.
62
Enlarge Membership
The increased participation will lead to higher Added-
Value (better bargaining power) as well as a wider global
representation. This Thrust will provide the impetus for
the development of GFP as an entity to become larger
group geared towards becoming a global leader.
63
Information-Intensive and Knowledge-Driven
Processes
The adoption of information-intensive and knowledge-
driven processes and the increased use of information,
technology for e-commerce will form the essential
foundation towards our future well-being.
64
ROLE OF GFP-M01
The M01 assume a critical role in the Group’s objectives
anticipating the Trends and challenges ahead through
strengthening of both forward and backward linkages.
The basis is to achieve a broad based, resilient and
competitive result set in place with policies and programs
complimenting members activities through integration
and an enlarging member’s representations worldwide.
65
GFP shall assume the Role as a Professional Body
primarily for consultation. Our role focuses on what can
be offered such as our PRIORITY, BARRIERS & BENEFITS
entailing types of STRATEGIES AND PROGRAMS so as to
enhance competitiveness.
The M01 strategy through integration serves as a One
Stop Center hitherto a forum to protect its members whilst
pursing for technological advancement.
66
The significant role designed to Increased Business Value
and Competitiveness through an efficient Intermodal
Transportation Network thus providing a Synergistic
Integrated Network. The stringent Security Measures and
Requirement on Insurance Coverage is a pre-requisite for
the supply chain practical approach.
67
The Role of IT Solutions in streamlining the information
Flow is the key element in meeting the demands of
clients and to establish GFP as an e-Logistic player.
68
MASTERPLAN
The 5-year masterplan which will set the
strategic position and future direction of
the Group.
69
OBJECTIVES
•To be a recognized & preferred supply chain service
provider.
•To enhance the competitive position & efficiency by
world standard.
•System Management Software (IT Solution) group-
wide.
•Service Contract Rates with Major Carriers.
70
IMPLEMENTATION
PHASE 1
To promote internal trade amongst members,
strengthening group’s performance & to foster strategic
alliances in other unrepresented cities.
71
The service sector is the Main economic driver
purely knowledge intensive and is an enabling tool
for all sectors.
The need to enhance its efficiency and competence
(reduce cost) and to move up the Value-Chain of
activities especially to support an advanced
industries.
Rapid advancements and convergence environment
in this instance will lead to efficiency gain from the
formidable increased global competition.
72
LIABILITY & INSURANCE
73
DERIVATION OF LIABILITY
**************************
1)STATUTE
2)TORT
3)PROFESSIONAL DUTIES
4)CONTRACT :i) NON STC
ii) STC
74
RISKS ANALYSIS OF NVOCC/MULTIMODAL OPERATORS
A. LIABILITY
1)STATUTORY – By Law/Act
- Motor Third Party Legislation under Road Transport Act 1987
- Workmen’s Compensation (Amendment) Act 1976
2)CONTRACT
- Contract Of Carriage – House B/L / Ocean B/L
i) Port to Port operator
ii) Door to Door operator
Guided by respective Carriage of Goods by Sea Act (1972),
COGSA, COSWA, Warsaw Convention (1929), Standard
Trading Conditions, Port Authority Regulations etc.
•Contract of Storage – private contract
•Contract of Packing – private contract
•Contract of Project – private contract
75
3)PROFESSIONAL NEGLIGENCE - Errors and Omissions
Liability arises out of the negligence of your staff/company resulting in
your client having to suffer financial loss or additional expenses.
4)TORT
Duty of care under Common Law arising from Third Party or non-
contractual party lawsuit due to your negligence resulting in loss or damage
and/or bodily injury to the Third party.
76
B. PROPERTY
1. Loss of Damage of Property
Loss of damage to your physical assets, monies to be covered under All
risks, Fire, Machinery Breakdown etc or Burglary or other property
insurances
C. OTHER PECUNIARY LOSS
1. Consequential Loss
This is loss of profit of your Company caused by any physical loss or
damage to the property.
2. Credit risks
Non-payment risks of your buyer/client after service rendered to them
3. Political Risks
Risks due to change of government, change of Import Regulations, civil
war, risks, strike and malicious damage
77
D. TRADE RISKS
These are Risks that are Excluded under various policies, exclusion not
intended to insure by insurer or it is Not an Insurable event at all.
Example:
a. Loss of Business/ Goodwill
b. Loss of Currency Exchange
c. Loss of Key Staff
D. INFLATION
e. War
f. Fraud
g. Assets Depreciation
h. Radiation
i. Fines, Penalties, Liquidated Damage & etc.
All the above events are insurable except (D)
78
INSURANCE
COMPARISON BETWEEN BAILEE LIABILITY AND GOODS IN TRANSIT
INSURANCE
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
BAILEE LIABILITY INSURANCE
Collection Point to Delivery Point (Including Temporary Storage)
Defenses + Legal Costs and others
Other Legal Liability such as loading & unloading, storage…etc.
To Protect Logistics & Warehouse Operators, Packer…etc
GOODS IN TRANSIT / MARINE CARGO INSURANCE
Point A to Point B Only
Strictly Property Damage Only (No Other Interest)
Excluding Legal fees & Defense costs
To Protect the Cargo owner ( shipper/ cnee ) only
79
SELLER’S FORWARDER’S PORT
FACTORY W/HOUSE W/HOUSE FINAL DEST
PORT KLANG HONG KONG
PORT FORWARDER’S BUYER’S
MTO / NVOCC FLOW CHART
WAREHOUSE
LEGAL LIABILITY
FOB
CONTRACT OF
CARRIAGE
CNF CIF
SHIPOWNER
P & I CLUBPORT/STEVEDORES
LIABILITYBAILEE LIABILITY
MARINE CARGO (EFFECTED BY SELLER / BUYER TO FINAL DESTINATION)
MARINE CARGO
INSURANCE Marine Insurance Act (1906) OR
CONTRACT OF INSURANCE
B/L Act or Contract of Carriage By Sea Act (1972)
Same Same
Imposed by Statute LawLIABILITY LTD BY STC
Non-STC & Extension of B/L
80
TRADE FINANCE
MULTIMODAL OPERATOR
NVOCC
International Commerce Term (Incoterm) CONTRACT OF SALES
L/C AT SIGHT DP
SELLER ADVISING
BANK
NEGOTIATING/
ISSUING BANK BUYER
Uniform
Customs
Practice
(UCP 500)
TRADE FINANCE
81
LANDSEA + AIR
Limited by:
(A) IMPOSED BY COUNTRY LAW
(B) EXTENSION OF B/L
(C) BASED ON PRIVATE TRADING CONDITIONS OR
AGREEMENT UNDER CONTRACT OF CARRIAGE NON STC
(D) BASED ON ASSOCIATION STANDARD
TRADING CONDITIONS (STC)
Port Bonded Final Buyer
Warehouse Warehouse Warehouse
LIMITATION OF CARRIER LIABILITY
UNDER B/L ACT OR CARRIAGE BY SEA
ACT (1972) OR WARSAW CONVENTION 1929
(A) WARSAW CONVENTION 1929 US$ 20.00 Per Kg
(B)HAGUE RULE £100 / Package or unit unless
value declare & inserted in B/L
(C) HAGUE –VISBY RULE 2 SDRs / Kg or 666.67 SDRs /
Package . 1 SDR = US$ 0.05
(D) HAMBURG RULE 2.5 SDRs / Kg or 835 SDRs /
Package or Shipping unit
(E) COGSA 1936 US$ 500 Per Package
(F) COGWA 1936 CNS 500 Per Package
82
CONCLUSION:
KNOW YOUR CUSTOMER’S CHANGING NEEDS.
UNDERSTAND AND PROTECT YOUR RIGHTS UNDER STC.
ENFORCE YOUR STC IN YOUR CONTRACT OF CARRIAGE WITHYOUR CUSTOMER BEFORE CARRIAGE OF GOODS.
ALWAYS ADVISE YOUR CUSTOMER TO EFFECT THEIR OWNGOODS IN TRANSIT OR MARINE CARGO INSURANCE
83
INSURE YOUR LIABILITY UNDER THE STC
IN THE EVENT OF A CLAIM, REPORT TO YOUR
UNDERWRITERS OR GFP BOARD IMMEDIATELY
DO NOT ADMIT ANY LIABILITY WITHOUT DISCUSSING
WITH YOUR INSURANCE ADVISOR, THE LOSS ADJUSTER,
GFP BOARD OR YOUR SOLICITOR.
YOUR DUTY TO EXERCISE DUE DILIGENCE.
84
INTERNATIONAL RULES & CONVENTION
85
1. Definition :
“Carrier” means the Company stated on the front of this Air Waybill as being the Carrier and on whose behalf this Air Waybill has been signed. The
Carrier carries or undertakes to carry the cargo hereunder or perform or undertakes to perform any other services incidental or additional to the
Carriage.
“Carriage” means transportation of the cargo by air (including any substitute mode of transport) whether gratuitously or for reward from the
airport/place of departure to the airport/place of destination shown on the face hereof. Services incidental or additional to the Carriage shall
comprise any and all other services provided in connection with the Carriage.
“Warsaw Convention” means the Convention for the Unification of certain rules relating to International Carriage by Air, signed at Warsaw, 12th
October 1929, or that Convention as amended at Hague, 28th November 1955, whichever may be applicable.
2. a. The Carriage hereunder is subject to the Warsaw Convention unless such Carriage is not “international carriage” as defined therein;
b. The Carriage hereunder and other services incidental or additional to the Carriage are further subject to these Conditions of Contract of Carriage,
applicable laws (including national laws implementing the Warsaw Convention), applicable government regulations, applicable tariffs.
3. In compliance with any requirement of the Warsaw Convention or otherwise applicable to the Carriage hereunder:-
a. The agreed stopping places are deemed to comprise any places (except the place of departure and the place of destination) shown in any
timetables or tariffs of the Carrier as stopping places and such other places as Carrier may determine for the Carriage hereunder;
b. First Carrier’s name if abbreviated on face hereof is set out in full with the abbreviation in such Carrier’s tariffs and/or Conditions or Carriage;
c. First Carrier’s address is the airport of departure.
WARSAW CONVENTION (AIR ONLY) CONDITIONS OF CONTRACT OF CARRIAGE
86
4. Carrier’s Liability
Except as may be provided in Condition 2, in the Carriage of the cargo and performance of other services incidental or additional to the Carriage:-
a. The Carrier is not liable to the Consignor, Consignee or to any other person for any loss, damage, misdelivery, delay or claim of whatsoever
nature arising out of the Carriage or other services incidental or additional to the Carriage unless caused by the negligence of the carrier;
b. The Carrier’s liability shall be limited to US$20 or the equivalent per kilogramme according to the gross weight of the cargo lost, damaged;
misdelivered, delayed or in respect of which any other claim is made, unless a higher value of the cargo has been declared by the Consignor at
the time when the cargo is handed over to the Carrier and the Consignor has paid a supplementary sum if the Carrier so requires. Liability for
any consequential loss or damage of whatsoever nature is excluded;
c. The Carrier shall be wholly or partly exonerated from liability to the extent that any act or omission of the Consignor, Consignee or any other
person indicated on the face hereof to be notified of the arrival of cargo caused or contributed to any loss, damage, misdelivery, delay or
claim.
d. The consignor shall defend, indemnify and hold harmless the Carrier against any claim or liability (and any expense arising therefrom) arising
from the Carriage or other services incidental or additional to the carriage in so far as such claim or liability exceeds the Carrier’s liability under
this Air Waybill.
5. Subject to Condition 2, the Carrier’s limit of liability for proven damages may be increased to an amount not exceeding any sum entered on
the face of this Air Waybill as “declared value for carriage” in so far as such amount is in excess of the limits of liability otherwise applicable
under these Conditions.
6. Any exclusion or limitation of liability applicable to the Carrier shall apply to and be for the benefit of any independent contractor, servant or
agent of the Carrier and of any person and servant and agent of same whose aircraft, premise, vehicle of other equipment is used by the
Carrier for the Carriage or for services incidental or additional to the Carriage. This Air Waybill is issued by the Carrier on its own behalf and
on behalf of each of the other persons referred to in this Condition 6 as far as the provisions in respect of the exclusion of limitation of liability
are concerned.
WARSAW CONVENTION (AIR ONLY) CONDITIONS OF CONTRACT OF CARRIAGE
87
7. a. The Carrier may select, deviate and change the routing shown on the face hereof;
b. The Carrier may substitute alternative carriers or aircraft or equipment to effect the Carriage hereunder and may
without notice and with due regard to the interests of the Consignor substitute means of transportation other than by air.
8. a. The Consignor guarantees payment of all charges for the Carriage and other services incidental or additional to the
Carriage due in accordance with Condition 2 except to the extent that the Carrier has extended credit to the Consignee
without the Consignor’s written consent;
b. The Consignor is responsible for the correctness of the particulars and statements relating to the cargo in this Air
Waybill and shall indemnify the Carrier against all damages suffered by him or by any other person to whom the Carrier is
liable by reason of the irregularity, incorrectness or incompleteness of said particulars and statements;
c. The Consignor is obliged to provide all information and attach all documents to this Air Waybill as may be necessary to
meet the formalities of any customs, security or government requirement at the airport/place of departure and of
destination and the Consignor shall indemnify the Carrier against all damages suffered by him, or by any other person to
whom the Carrier is liable, by reason of the absence, insufficiency or irregularity of any such information or documents;
d. The Consignor must not exercise any rights of disposal over the cargo without lawful excuse nor act in a manner as to
prejudice the Carrier or other consignors and shall indemnify the Carrier against all damages suffered by him, or by any
other person to whom the Carrier is liable, by reason of the Carrier’s compliance with the Consignor’s disposition
instructions as to the cargo and/or the absence, insufficiency or irregularity of any such instructions;
WARSAW CONVENTION (AIR ONLY) CONDITIONS OF CONTRACT OF CARRIAGE
88
e. The Consignor shall comply with all applicable laws and government regulation of any country to, from, through or over
which the cargo may be carried and shall indemnify the Carrier against all damages suffered by him of by any other
person to whom the Carrier is liable, by reason of any failure so to comply;
f. Without prejudice to the foregoing, the Consignor shall hold harmless and keep the Carrier indemnified from and
against any and all liabilities, losses, damages, costs and expenses (including duties, taxes, levies) arising out of the
Carrier acting in accordance with the Consignor’s instruction or arising from any breach by the Consignor of any part of
these Conditions.
9. Complaints and any claim for damages must be made in accordance with Condition 2. Subject thereto:-
a. The person entitled to delivery must make a complaint to the Carrier in writing dispatched within the following time
periods in the case of :-
i. damage to (including partial loss of contents of) the cargo, forthwith after discovering the damage and at the
latest within 14 days current from receipt of the cargo;
ii. delay, within 21 days current from the date the cargo are placed at his disposal;
iii. loss, misdelivery or non-delivery of the cargo, within 120 days current from the date of issue of this Air
Waybill;
Failing such complaint within the times aforesaid, no action whatsoever shall lie against the Carrier.
b. Any right to damages against the Carrier shall be extinguished and the Carrier shall be discharged of all liability
whatsoever unless legal proceedings are brought within two years from the date of the aircraft’s arrival at the destination
or from the date on which the aircraft ought to have arrived or from the date on which the Carriage stopped.
WARSAW CONVENTION (AIR ONLY) CONDITIONS OF CONTRACT OF CARRIAGE
89
10. Charges
a. Subject to Condition 2(b), charges for the Carriage and other services are those published by the Carrier and in effect on
the date of issue of this Air Waybill and together with any other monies payable in connection with the carriage or other
services in relation to other cargo. Additional to his other rights, in the event of non-payment of any charge or other such
amount, the Carrier shall have the right to dispose of the cargo at public or private sale (after giving 14 days notice to the
Consignor or Consignee at the address stated on the face thereof) and to pay himself such monies as are due and payable
out of the proceeds of sale net of expenses.
11. a. Subject to Condition 2, notice of arrival of the cargo at the place of destination will be given to the Consignee and any
other party whom the Carrier has agreed hereon so to notify by ordinary methods and the Consignee must accept delivery
and collect the cargo in accordance with such notice.
b. Where the Consignee does not collect the cargo in accordance with any notice sent by the Carrier following arrival of the
cargo or as otherwise agreed between the parties, the cargo shall be deemed to have been delivered hereunder to the
Consignee and the liability of whatsoever nature of the Carrier in respect of the cargo shall cease. Without prejudice to all his
rights, the Carrier may dispose of such uncollected cargo by sale, destruction or abandonment as appropriate to the Carrier
on such terms as may reasonably be obtained. Any proceeds received for the cargo on disposal shall be paid to the Carrier
to compensate him for any monies due to him (whether or not by reference to the cargo itself) and any expenses incurred
following the deemed delivery and any expenses of disposal.
c. At any stage where the cargo may deteriorate or where otherwise it is impracticable for the Carrier to retain possession of
the cargo, the Carrier may dispose of the cargo on such terms as may reasonably be obtained, if any.
WARSAW CONVENTION (AIR ONLY) CONDITIONS OF CONTRACT OF CARRIAGE
90
12. Subject to Condition 2, any action, suit or legal proceedings against the Carrier
must be brought before the court having jurisdiction where the Carrier has his principal place of business or is
ordinarily resident and the law of that court will apply.
13. No servant of agent of the Carrier has authority to alter, modify or waive any of these Conditions.
14. Invalidity
If any provision in this Air Waybill is held to be invalid or unenforceable under applicable law, such invalidity or
unenforceability shall attach only to such provision. The validity of the remaining provision shall not be affected
thereby.
WARSAW CONVENTION (AIR ONLY) CONDITIONS OF CONTRACT OF CARRIAGE
91
1. Which voyages covered ?
2. Which contracts covered ?
3. Geographical application
4. Who is the carrier ?
5. Contract and tort claims
6. Carrier’s general duty of care
7. Carrier’s defenses
8. Burden of proof
9. Fire
10. Live animals
11. Deck cargo
12. Dangerous cargo
13. Limits of liability
14. Loss of right to limit liability
15. Lower limits by agreement ?
16. Higher limits by agreement ?
17. Deviation
18. What information must the bill contain ?
19. What is the effect of statements in the bills ?
20. Duties of shipper in supplying carrier with information
21. Letters of indemnity
22. Notification of damage
23. Consequences of failing to notify carrier of loss under 22 above
24. Limitation of action
25. Where can cargo owner commence proceedings?
26. Arbitration
27. General average
28. Provisions which conflict with the Rules
Hill Taylor Dickinson
November 1992
CARGO CONVENTIONS
(COMPARISON OF HAGUE/HAGUE-VISBY AND HAMBURG RULES)
92
Hague Rules Hague-Visby Rules Hamburg Rules
1. Which voyages
covered ?
Rules are silent Art X
(a) Bill issued in a contract
state
(b) Carriage from contracting
state
(c) Contract of carriage
expressly applies Rules
Art 2
(a) Bill issued in
contracting state
(b) Carriage from
contracting state
(c) Carriage to contracting
state
(d) Bill provides Rules are
to apply
2. Which contracts
covered ?
Art I (b)
Bill of lading or “other
similar document of
title” Not charterparties
Art I (b)
Same as Hague Rules
Art 1.6
Contract of carriage by sea.
Need not be a bill of document
or title. Not charterparties.
3. Geographical
application
Art I(e)
“covers the period from
the time when the
goods are loaded on to
the time when they are
discharged from the
ship”. Tackle to tackle.
Art 1(e)
Same as Hague Rules
Art 4
Carrier is responsible while in
“charge” of the goods at the
port of loading, during the
carriage, and at the port of
discharge. i.c. normally from
time taken over from shipper to
time delivered to consignee,
subject to local port regulations.
CARGO CONVENTIONS
(COMPARISON OF HAGUE/HAGUE-VISBY AND HAMBURG RULES)
93
4. Who is the carrier ? Art I (a)
Owner or charterer “who enters
into contract of carriage with a
shipper”
Art I (a)
Same as Hague Rules
Art 1.1, Art 10, Art 11
“any person by whom or in
whose name a contract of
carriage has been
concluded with a shipper”.
Covers “actual” and
“contractual” carrier.
5. Contract and tort
claims
Rules are silent. May apply to
just contract claims. Applies to
both under English law.
Art IV bits
Apply to contract and tort
claims.
Art 7
Apply to contract and tort
claims
6. Carrier’s general duty
of care
Art III
1. Carrier must exercise due
diligence before and at beginning
or voyage to:
(a) Make ship seaworthy
(b) Properly man, equip and
supply the ship
(c) Make holds etc. fit and safe
for reception, carriage and
preservation of cargo.
2. Carrier must properly and
carefully load, handle, stow,
carry, keep, care for and
discharge goods carrier.
Art III
Same as Hague Rules
Art 5.1
Carrier, his servants and
agents, must take all
measures that could
reasonable be required to
avoid the event causing loss
and its consequences.
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7. Carrier’s defences Art IV
1. Unseaworthiness-only
defence is for carrier to
show he exercised “due
diligence” to ensure vessel
seaworthy before and at
beginning of voyage.
2. Properly and carefully
load etc. The following
defences apply:
(a) Act, neglect or default of
the master, mariner, pilot or
the servants of the carrier in
the navigation or in the
management of the ship.
(b) Fire, unless caused by
the actual fault or privity of
the carrier.
(c) Perils, dangers and
accidents of the sea or other
navigable waters.
(d) Act of God
(e) Act of war
(f) Act of public enemies
Art IV
Same as Hague Rules
Art 5.1
Carrier must prove he, his
servants or agents, took all
measures that could
reasonably be required to
avoid the occurrence and its
consequences.
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(g) Arrest or restraint of
princes, rules or people, or
seizure under legal process
(h) Quarantine restrictions
(i) Act or omission of the
shipper, or owner of the
goods, his agent or
representative.
(j) Strikes or lock outs, or
stoppage or restraint of
labour from whatever cause,
whether partial or general
(k) Riots and civil
commotions
(l) Saving or attempting to
save life or property at sea
(m) Wastage in bulk or
weight or any other loss or
damage arising from
inherent defect, quality or
vice of the goods
(n) Insufficiency of packing
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(o) Insufficiency or
inadequacy of marks
(p) Latent defects not
discoverable by due
diligence
(q) Any other cause arising
without the actual fault or
privity of the carrier, or
without the fault or neglect
of the agents or servants of
the carrier, but the burden of
proof shall be on the person
claiming the benefit or this
exception to show that
neither the actual fault or
privity of the carrier nor the
fault or neglect of the agents
or servants of the carrier
contributed to the loss or
damage.
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8. Burden of proof Rules are unclear (except
under Art IV (2) (q) ) Under
English law cargo owner must
establish inference of
unseaworthiness or failure to
properly and carefully carry
the goods, and then carrier
must prove relevant defence
in 7.
Same as Hague Rules. Carrier must prove that
reasonable steps to avoid
loss were taken unless
damage is caused by fire
(see 9 below)
9. Fire Arts III & IV If due to e.g. poor
stowage, carrier only liable if
caused by his actual fault or
privity. If caused by
unseaworthiness, carrier liable
unless he exercised due
diligence to ensure vessel
seaworthy before and at
beginning of voyage.
Art III & IV
Same as Hague Rules.
Art 5.4
Carrier liable if claimant
proves fire arose from fault
or neglect on the part of the
carrier, his servants or
agents.
10. Live animals Art I (c)
Excluded from Rules.
Art I (c)
Same as Hague Rules. C/f
UK COGSA 1971, SI (7)
which applies Rules to live
animals.
Art 1.5 & 5.5
Rules apply but carrier not
liable for inherent “special
risk”. If carrier complies with
shipper’s instructions he will
be presumed not to be
liable.
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11. Deck cargo Art I (c)
Excluded from Rules if
stated to be carried on deck.
Art I (c)
Same as Hague Rules. C/f
UK COGSA 1971, SI (7)
which applies Rules to deck
cargo (see e.g. Chanda
[1989] 2 Lloyed’s Rep 494)
Art 9
Rules do not exclude deck
cargo. Carrier can undertake
deck carriage if agreed with
shipper or accords with the
“usage of a particular trade
or is required by statutory
rules or regulations”. Must
be statement in Bill that
goods carried on deck.
Failure to agree deck
carriage makes carrier liable
for damage, loss or delay,
resulting solely from
carriage on deck. Carrier
cannot limit liability when
deck carriage is in breach of
express agreement to carry
below deck.
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12. Dangerous cargo Art IV Rule 6 Inflammable,
explosive or dangerous goods
if loaded without knowledge of
the master (or carrier’s agent)
may be discharged, rendered
harmless or destroyed at
shipper’s expense. If carrier
knows of their nature but they
prove dangerous they may still
be discharged, rendered
harmless or destroyed without
liability on the part of the
carrier, save in general
average.
Art IV Rules 6
Same as Hague Rules.
Art 13 Similar provisions
apply, and the shipper is
obliged to mark and label
dangerous goods in suitable
manner.
13. Limits of liability
(a) Goods lost or
damages
Art IV Rule 5
Pounds 100 per package or
unit unless value declared and
inserted in bill of lading.
Art IV Rule 5
10,000 Poincare Frances
per package or unit of 30
Poincare Frances per kilo of
gross weight of damaged or
lost goods whichever is
higher. By virtue of SDR
Protocol 1979 2 SDRs per
kg or 666.67 SDRs per
package.
Art 6
2.5 SDRs per kg or 835
SDRs per package or
shipping unit.
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(b) Goods delayed No special provisions Same as Hague Rules Art 6
2.5 x freight payable on
goods delayed, subject to
upper limit or total freight
on all goods or amount of
limitation if goods have
been lost or destroyed
under in (a) above.
14. Loss of right to limit
liability
No special provisions but
carrier’s liability may be
unlimited if unjustified
deviation, or deck carriage.
Art IV Rules 5 (e)
Right to limit lost if carrier
intends to cause loss or is
reckless knowing loss
would probably result.
May also be lost if
unjustified deviation or deck
carriage.
Art 8
Carrier will only lose right to
limit liability if he intended
to cause loss or was
reckless knowing such loss
would probably result. Deck
carriage where expressly
prohibited will result in loss
of right to limit liability.
15. Lower limits by
agreements ?
Art VI
Only permitted where not
an ordinary shipments, and
reasonable in special
circumstances.
Art VI
Same as Hague Rules
No specific right to agree
lower limits
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16. Higher limits by
agreement?
Art V
Permitted if recorded in Bill.
Art V
Same as Hague Rules.
Art 6.4 Art 15
Permitted if agreed. Should
be recorded in Bill.
17. Deviation Deviation carrier might lose
right to rely on defences in
Rules and loss right to limit
liability.
Art IV Rule 4
Provides “any deviation in
saving or attempting to save
life or property at sea, or
any reasonable deviation
shall not be deemed to be
an infringement or breach of
the Rules or contracts of
carriage”
Same as Hague Rules No special provisions.
Deviation if its caused loss
is subject to general test of
carrier’s liability
Art 5.6
Exempts a carrier from
liability where he attempts to
save life or “reasonable
measures” are taken to save
property. This would apply to
deviation as much as any
other cause of loss.
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18. What information must
the bill contain ?
Art III Rule 3
(a) Leading marks necessary
for identifying goods.
(b) Number of packages or
pieces, or the quantity or
weight, as the case may be,
as furnished by the shipper.
Art III Rule 3
Same as Hague Rules
Art 15
(a) The general nature of the
goods, the leading marks
necessary for identification of the
goods, an express statement, if
applicable as to the dangerous
character of the goods, the
number of package or pieces, and
the weight of the goods or their
quantity otherwise expressed, all
such particulars as furnished by
the shipper.
(b) The apparent condition of the
goods.
(c) The name and principal place
of business of the carrier.
(d) The name of the shipper.
(e) The consignee if named by
shipper.
(f) The port of loading under the
contract or carriage by sea and the
date on which the goods were
taken over by the carrier at the
port of loading.
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(g) The port of discharge under the
contract of carriage by sea.
(h) The number of originals of the bill of
lading, if more then one.
(i) The place of issuance of the bill of
lading.
(j) The signature of the carrier or a
person acting on his behalf.
(k) Freight to the extent payable by the
consignee.
(l) The statement referred to in
paragraph 3 of Art 23, i.e. applicability
of the Convention.
(m) Statement if applicable, that the
goods shall or may be carried on deck.
(n) The date or the period of delivery of
the goods at the port of discharge if
expressly agreed upon between the
parties.
(o) Any increased limit or limits of
liability where agreed.
If the carrier is unable to state any of
the matters in (a) above he should
express his omission in the Bill
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19. What is the effect of
statements in the bill ?
Art III Rule 4
Prima facie evidence of their
accuracy.
Art III Rule 4
Prima facie evidence in
hands of shipper, conclusive
in hands of third party, e.g.
consignee to whom Bill is
transferred in good faith.
Art 16
Prima facie evidence of
statement in hands of
shipper (whether shipper or
received Bill). Conclusive in
hand of third part who relies
on statements.
However, if freight is payable
by holder of Bill failure to
state this is evidence that no
fright is payable.
20. Duties of shipper in
supplying carrier with
information
Art III Rule 5
Shipper is deemed to
guarantee accuracy of
statement as to weight and
quantity of cargo. Shipper to
indemnify carrier for loss
resulting from errors.
Art III Rule 5
Same as Hague Rules.
Art 17
Same as Hague Rules.
21. Letters of Indemnity No specific provisions Void
under English Law (Brown
Jenkinson & Co Ltd) v. Percy
Dalton (Ldn) Ltd [1957] 2 QB
621)
Same as Hague Rules. Art 17
Void for bill in hands in hands
of consignee. Valid against
shipper unless carrier
intended to defraud
consignee. If fraud, carrier
may not limit liability.
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22. Notification of damage Art III Rule 6
Notice of loss or damage
must be given in writing to
the carrier or his agent:
(i) On day of delivery
(ii) Within three days where
damage is latent.
Art III Rule 6
Same as Hague Rules.
Art 19
Notice of loss or damage to be
given in writing to carrier:
(i) By working day following
delivery to consignee or
(ii) Within 15 days of delivery
where damage is latent.
Notice of delay must be given
within 60 days of delivery.
Carrier must give notice to
shipper of complaint within 90
days of delivery.
23. Consequences of failing
to notify carrier of loss under
22 above.
Art III Rule 6
Prima facie evidence of
delivery of goods in
condition described by Bill.
Art III Rule 6
Same as Hague Rules
Art 19
Prima facie evidence of delivery
of goods in condition described
by Bill.
If goods delayed and complaints
not made within 60 days the
carrier is exempted from liability.
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24. Limitation of
action
Art III Rule 6
“Suit” must be brought
within one year of delivery
of date delivery should
have taken place.
Art III Rule 6
Same as Hague Rules.
Art III Rule 6 Indemnity
actions may be brought after
one year, the period for
commencing suit to be not
less than 15 months after
discharge.
Art 20
Litigation or arbitration to be
commenced within two years from
date of delivery of goods or the last
day upon which goods should have
been delivered. Indemnity
Proceedings may be commenced
after this period (at least 90 days
from date of commencement of
action against carrier must be
allowed)
25. Where can
cargo owner
commence
proceedings ?
Rules are silent. Same as Hague Rules. Art 21
May sue in court of :
(a) Principal place of business of
carrier
(b) Place contract was made
(c) Port of loading
(d) Port of discharge
(e) Place designated by contract of
carriage
(f) Place of arrest of vessel, may be
challenged by carrier, if he submit
to one of the other jurisdictions and
provides security for the claim.
107
26. Arbitration Rules are silent. Same as Hague Rules Art 22
Arbitration agreement
permitted. If incorporating
charterparty arbitration clause,
must be comprised in bill of
lading as “special annotation”.
Claimant may choose where to
commence arbitration from:
(a) Place where defendant has
principal place of business
(b) Place where contract was
made
(c) Port of loading
(d) Port of discharge
(e) Place specified in arbitration
clause.
27. General average Art V
“nothing in these rules shall
be held to present the
insertion in a Bill of any
lawful provision regarding
general average”.
Art V
Same as Hague Rules.
Art 24
“The provision of this
Convention relating to the
liability of the carrier for loss of
or damage to the goods also
determine whether the
consignee may refuse
contribution in general
average…”
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28. Provisions which
conflict with the Rules
Art III Rule 8
Void.
Art III Rule 8
Void.
Art 23.1
Void and compensation may
be payable where claimant has
suffered a loss: see Art 23.4
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