Schedule A:
Code of Conduct:
1. Membership Guidelines
1.1 Definition of Membership Status
Founder Members
A Five Star Agent who joined the group at inception and has demonstrated good and continuing commitment to the group with the generation of solid shipment numbers to their fellow member partners coupled with regular AGM attendance.
Established Members
Agents who are as committed as Founder Members above, but who joined in the years after group inception.
Members
Agents who have joined but have not committed to regular AGM attendance.
Members in some strategic areas will see their country become a duel agency, as the group seeks out a new partner to better develop that area and enhance deeper relationships.
Trial Associate Members & Associate Members
Agents brought into off line countries where all recruitment efforts did not unearth a normal member. All Associate Members work on a no credit – cash up front basis.
All New members joining begin as a normal member or trial associate member, and may end up as Established Members if they fulfill their network obligations.
1.2. Entry Criteria on Joining for Potential New Members
1.2.1. Services
Any potential member applying to join the FS Network must be Multi Modal;-Air, Sea, Road and offer the full range of expected freight forwarding services including but not limited to;- Import & Export Shipping, Customs Brokerage, Warehousing and Insurance.
1.2.2. Credit References
On application the agent’s website will be checked for the said services and satisfactory credit references must be provided.
1.2.3. History
The applicant must have been established in the freight forwarding business for a minimum of two years.
1.2.4. Accreditations
In our selection process, preference will be given to agents that have industry accreditations to their name, ISO , FIATA, IATA, C-TPAT and any further information that demonstrates the quality of their professionalism and reliability.
1.2.5. Network Exclusivity
The applying member must not be a member of another freight forwarders network (except for the following exception)
If FS cannot recruit a member agent for an open territory who is not in another network after exhaustive canvassing, then in order to provide coverage, service and potential business for its members, it will waiver the "one network rule" to recruit one member agent who belongs to another network.
1.3. Pre Entry Viewing
All incoming agents will be subject to an open vetting by FS members (Pre Entry Viewing) prior to joining for a one week period, so any potential bad risk company may be identified and blocked from joining.
In addition any applying agent found on the www.fdrs-ltd.com delinquent agents website will have their application cancelled.
1.4. Sole Agency
On completion of a successful application process, new members joining will be officially announced to the group and be awarded the freight forwarding rights to their home country on a sole agency basis.
Exceptions to sole agency are China, South Africa, the USA, and strategic areas where normal members will be joined in a duel agency basis over time.
1.5. Prime Lists
On joining your name as Main Network Contact will be added to our official Prime Agents list and sent to all prime contacts.
It is your responsibility to take these names and create your own prime contact group so you may establish communications and develop relationships directly with your new FS Partners.
1.6. Bulletins
Please as per 1.5. use your new collated prime list to send news and bulletins about any company changes, new services or special offers directly to your fellow members.
The FS Head Office will not receive and broadcast such bulletins on your behalf due to the existing high volume of other network emails handled, and also the communication of news about your company is your responsibility to promote directly.
1.7. Reserve Agents
If a FS agent highly recommends an overseas partner to join the group, and the relevant country is already taken, then that agent will be added into a bank of reserve agents until such time as a vacancy arises.
FS understands that if no vacancies do arise, the agent may be compelled to seek other alternatives. (Outside of both Five Star and PFI, as PFI will not handle FS recommendations and vice versa)
Any agent applying directly that finds their country already taken, will (as per the above situation) have their name added to a reserve bank of agents.
1.8. Five Star & PFI Network Restrictions
The PFI Network operates and trades totally independently to Five Star
No agent will inter trade between either networks.
Transfers between PFI and Five Star and or Five Star to PFI are not allowed.
There will be no conflicts of interests between the two networks.
PFI is administered and run by another party.
1.9. Termination
If an agent is to receive termination, a one months notice will be given, and a global bulletin will be sent round warning of the termination. All members must then pay attention to get their outstanding dues paid by the outgoing member.
All means necessary (by working together) will be used to secure all FS agents payments are collected from the departing member.
Exception to this rule is an immediate and unforseen termination, i.e. serious misconduct.
Equally agents resigning from the group will also have the same process conducted.
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2. Accounts, Credit Terms
2.1 Payment Terms
All payment terms must be agreed between members.
2.2 Individual Credit Agreements Between Members
It is agreed that to provide protection and clarity in case of a dispute involving payments, all Five Star agents should create and adhere to individual credit agreements amongst themselves. (This can be just a simple clarification and agreement via email)
The agreement should cover credit terms, credit limits, maximum credit ceilings and minimum payments (to avoid bank charges)
These agreements are to be kept on file, and in the case of a dispute sent with the complaints form to the Committee.
Again in the event of any dispute the two parties involved must make every endeavour to solve the problem out between them, prior to entering the full grievance procedure.
2.3 Invoicing Dates
It is agreed that the Billing (or Invoicing) Date will be the shipping date on the HBL/HAWB Date; (No invoices are to be dated before this date)
2.4 Currency Invoices are Paid In
The paying agent must make every effort to pay the receiving agent in the currency requested on their invoice.
If it is impossible (due to local banking restrictions) to pay in a requested currency then the paying agent must agree the amount needed to convert with the receiving agent so there is no loss when transfer is made.
2.5 Bank Charges
All bank charges must be borne by the paying and not the receiving agent (except of course the local banks handling fee in the receiving agents country)
If a company does not adhere to the above and invoices are short paid on a regular basis, (and the short payment amounts are significant), they should be referred onto the President who will investigate the problem with the Committee.
2.6 Zero Tolerance & Reducing Group Debt Risk
2.6.1. Zero Tolerance - Late Payers
To minimize credit control risk, FS Agents are encouraged to report any agent going outside their agreed credit terms and limits.
We appreciate the vast majority of you transact regularly and respect the flexibility of credit terms you often extend to keep a harmonious relationship.
However if you develop a specific concern over an account, it would be in the interests of all to report the agent as a late payer.
The President will then list the agent in blue on the Home Page, so all members are alerted, and any potential risk is minimized.
2.6.2. Zero Tolerance - Credit Warnings
Following onto late payments, if the same debt remains unpaid and becomes classified by you as seriously overdue, and you have had no response or received any payment after sending a minimum of 3 emails (in three fairly evenly spaced time periods) then an official warning will be issued.
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Such action will trigger a credit warning status code in the offending agent’s site entry (Code CREDWARN X 1).
In addition, the actual website page of the agent will also appear in red.
The home page A-Z list will show the country name of any agent with a credit warning listed in red.
If the offending agent triggers 3 credit warnings, they will be expelled from the group. A member with 2 credit warnings against them will read CREDWARNX2.
2.6.3. Zero Tolerance - Other
Any agent failing to report late or seriously overdue agents cannot expect to have the backing of the President or FS Committee in chasing their debts.
This system is non discriminatory, and will apply equally to all FS agents
The FS Committee will not be involved in the coding as the system is automatic
The only exception to this system is genuine queried invoices
Once payments are made an agent will go from Blue/Red back to Green, and the Credit Warning will be removed.
Agents shown on the home page in green have no warnings against them, and are no risk agents
2.7. Queried Invoices
Are not considered bad debts and so must not be forwarded to the President.
2.8. Membership Fees – Credit Limits
All Membership fees are payable within (maximum) 60 days of receipt of invoice.
Fees not paid in 60 days will trigger suspension.
Fees not paid in 90 days months will trigger termination and the agents details forwarded to the www.fdrs-ltd.com delinquent website for global broadcast.
2.9. Agency Fees – Underpayments due to Exchange Rates
Any agent who underpays their membership fee (with for example incorrect currency conversions) will be asked to pay the balance in cash to the President at the AGM.
A statement will be issued to the agent to prove the shortfall and to obtain agreement on the outstanding amount.
Often the amounts may only be between $10 and $50 dollars making it impractical to issue another overseas transfer.
If the agent does not attend the AGM the balance will be added to the following years fee.
2.10. Departures & Fees
Members may leave the FSFS Network at any time; however, their fees will not be refundable.
Members must refrain from using any FSFS material or logo after they have left.
2.11. Personal & Bank Guarantees
Have been agreed to be unworkable in the FS Network.
Instead members are asked to keep very strictly to their agreed credit limits.
2.12. Requests for Extended Credit Terms & Limits
Do not offer agents extended credit limits and terms just because it is an FS Member, Equally o not exercise pressure to ask for extended credit limits and terms for the same reason.
2.13. Excuses for Late Payments
The excuse, “we have not been paid by the client so we cannot pay” cannot be used to hold up payments.
2.14. Freezing of Assets
Unworkable as many FS members believe it is not legal, (to hold a payment up to a member when they in turn owe another member).
Instead the Zero Tolerance Policy will take precedence below.
2.15. Grievance Procedure
If you have a genuine complaint against a fellow member, the procedure is;-
Complete the Formal Network Complaint Form, and send to the President in confidence. The President will then send the form on to the concerned party to answer the complaint. That party must reply in full within 2 weeks and return the form to the President.
The Committee is then advised and then the matter will be discussed with the two parties involved.
A decision will be made by the Committee and both parties must abide by it.
The whole process is kept confidential to protect everyone’s good name.
In cases of poor or non response, the complaints form can be used to notify the committee of a weak link in the group. The case reported must demonstrate a clear case of negligence, the minimum benchmark being 3 unanswered emails, or 3 different occasions when a response has not been provided.
2.16. Blacklist Site for Delinquent Forwarders
Freight Deadbeats & Freight-Debt Replaced are now with FDSRs
Note The above sites are no longer active.
Five Star now aligns itself with www.fdrs-ltd.com (Forwarders Debt Recovery Service)
FDRS reports delinquent agents, shippers and consignees.
Please use the FDRS Hyperlink on the FS Home Page under Services.
Any Five Star agent that appears as a delinquent will be immediately suspended and an investigation launched as to why they appear.
Failure to provide a satisfactory explanation to the investigation will result in Group Termination.
Any agent being terminated for the above reason will not have their membership fees refunded.
Agents are advised if they wish to blacklist an agent to the above sites, they must report the offending agent themselves.
The President will blacklist anyone who does not pay their annual membership fees
2.17. Debt Recovery - Global Credit Solutions (GCS)
Are an international debt recovery service based in most countries where FS have offices. They are available to deal with any international debts and their hyperlink is listed in the “services” section on the home page.
For full information on their aligned service with Five Star please go to the bottom tool bar and click on the “Debt Recovery” link.
2.18. Debt Recovery – Shared Information
FS members have also requested to work together to provide each other with information and contact details of local lawyers in each others country to chase debts locally if required.
2.19. Current List of Blacklisted Agents in Five Star
To see all agents suspended, terminated and blacklisted from Five Star, go to the Blacklisted agent’s link at the bottom tool bar of the home page of our web site.
2.20. AGM Payments
Any agent who short pays the AGM hosts for the costs of the AGM will be asked for the balance in cash at the conference.
Often the amounts are small and another transfer impractical for the amounts involved. This is to protect the hosts losing on all bank transfers, and rightly reclaiming what is owed to them. Prior to that a statement must be issued by the host to prove the shortfall to the agent and have the amount mutually agreed.
2.21. Indemnity
FSFS Network cannot and will not be held responsible for commercial and –or financial obligations and risks that are not met by any FSFS member.
FSFS Network does not accept responsibility for insurance claims or commercial risks borne out of the actions of its members.
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3. Communications
3.1 Emails – Number in Website
It is compulsory to show 2 email addresses in your website entry, so that members can send their requests to two options, in case one staff member is away, for back up purposes. Equally, requesting members must send their requests to two contacts to avoid the above.
3.2 Emails – Subject Line Boxes
When sending emails, show in the subject box, the country and agent’s name, or the letters FS to grant easy identification that it is a Five Star enquiry and also to avoid loss to spam.
3.3 Emails – Acknowledgement & Responding
FSFS agents must acknowledge all communications within 24 hours, and reply in full in the shortest possible time thereafter.
In the case of a situation where business is threatened by a nil response it is agreed that the requesting agent must call the non reactive FS agent to obtain a direct answer. (As their server may be down)
3.4 Emails - Agents Broadcasting Global Bulletins
It is forbidden for any agent to broadcast to the network any complaint or grievance they wish to air about another member.
Any complaint must be referred to the grievance procedure below.
Any agent who is rude or insulting to another member is to be immediately reported. That agent will be warned with a yellow card about their conduct.
If they repeat such actions they will removed immediately from the group with a red card.
FS agents expect and deserve a high level of professionalism and courtesy towards each other and will report anyone who behaves poorly.
3.5 Reporting Negative Agents
II you decide to cease using an FS member because you are dissatisfied with their service, attitude or performance, you must report your decision to the President. If any agent appears more than once their position in the group will be reviewed.
3.6. Pre Alerts
To eliminate a weakness in our chain of communication, and especially on the receipt (or non receipt) of pre-alerts, the following procedure is highly recommended.
After sending a pre-alert or a sales enquiry, you should in 100% of cases receive a message of confirmation from the destination agent acknowledging receipt and confirmation.
If no message of confirmation is received, take the following steps;-
a) Resend and always copy in more than one person (if your first attempt to your usual operational or sales contact gets no response).
Go to the relevant agent’s site page and copy all other relevant operational or sales emails plus the prime contact, that way you will get through, except....
b) It may be if their server is down, (if no one answers you may deduce that is the problem).
In that case call the company, do not leave the issue 2 weeks and lose the business if its sales related, or operationally it could be very expensive, example;- if a large air or sea shipment has arrived and is attracting big storage charges.
The cost of a phone call at the right time call is a small price to pay to ensure your business is handled properly for all your clients.
Note- The Five Star Committee will not be involved on matters where miscommunication is proved and there is a dispute over arising charges as a result.
3.7 Sharing Information - No Confidence in a Network Agent
If it transpires that the President / Committee receives three complaints from different agents of unprofessional behavior against one FS Member that resulting in lost business or clients, then the three strikes and out rule will apply and the member in question will be expelled.
Any agent expelled for malpractice will not have their fees refunded.
A coding will apply (WARNUNPR) and be listed in their site entry on the top right hand corner, 2 warnings will be (WARNUNPRX2)
3.8 Social Networking & Face Book
The Network voted to avoid operating a Face Book Group Page.
Many FS staff will have their own Face Book pages and will communicate directly to their own friends within Five Star.
The same applies to Twitter, My Space and any other similar web portals.
3.9 On-Line Magazine
The 5Q e-magazine is a quarterly publication containing news and updates specific to the Five Star Network.
All members are encouraged to send articles and photos to the President for inclusion in each edition.
Commercial news will be prominent, but personal news is equally encouraged. We trust this will demonstrate to inactive FS members how strong and dynamic the FS Network is.
Please ensure if you send photos you send the names of the people in them.
Please adhere to sending Jpg Files around 1mb so they can be blown up to size without pixilation.
3.10 Communications involving Head Office
Please do not copy in the President on any general operational and / or sales matters or enquiries. The Five Star Head Office receives a high volume of emails on a daily basis and only wishes to devote its time on matters of network development, payment issues, formal complaints and any other matter that needs to be dealt with pertaining to our group’s code of conduct.
4. Website
4.1 Website – Access & Security
The www.fsfsnetwork.com website is a secure site for FS members only.
Only current authorized members may access the secure member’s area by using a user name and password provided by the President.
To enhance security, the website security access codes are changed twice yearly times per year to minimize any unauthorized access to data base.
When each password change occurs, an email will be sent from the President to all prime email contacts advising the new codes.
4.2 Website Front Page
This will be overhauled in the first half of 2011 to present a new corporate image. The current home page will move one step back to the secure members area.
We now request that all FS Members show a hyperlink back to the www.fsfsnetwork.com website in their own websites.
The aim being that so many hyperlinks back to out site will elevate the FS Networks site ranking on Google.
The home page will become a portal for receiving corporate global enquiries which the Network President will receive and send onto the group either via the Committee or the relevant agent in a requested area.
4.3 Site Pages - Information
The minimum information listed on an FS agent’s web page must be;-
Full Company Name as legally registered.
Full Company Address, PO Box address on there own are not acceptable and if used must be accompanied by a full Street Address in case couriers need to deliver (for example) original Bills of lading.
Emails, must show full name and company position.
Prime Contact, the name of the person who will assume all responsibility for all major network issues such as sales development and AGM attendance.
Main Operational Email for Operations, (One for Imports and One for Exports)
Main Email for Sales
Main Email for Accounts
Do not saturate your site page with many emails as this causes confusion for an agent reading your site page.
Website Address
Skype or MSN Link for Prime Contact
Hours of Business
A short list of services your company offers.
No agent is to advertise that they have an email address in any location if in fact they have no physical office there. (Ghost Offices).
It is compulsory to show in your site entry if you do not handle personal effects, dangerous goods or any other specific service.
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5. Operations
5.1. Profit Shares on Shipments
All profit shares must be advised and agreed before the execution of a shipment. Do not under any circumstances advise profit shares later, they must be agreed beforehand so all parties are satisfied.
Profit shares must be determined by the market and the agreement between agents.
5.2. Preparation of information for shipping to new countries
When shipping to a country for the first time, please do consult with, and get agreement from the FS agent at destination that the documentation is correct to avoid any delays, storage or penalties. A final emailing showing in effect a green light must be sent and agreed by the two agents, as if problems arise later, that green light email will be the evidence to determine the case.
Direct communication between the two agents planning the shipment is the best strategy; pre planning will avoid all problems. If agents want to publish any helpful information on their own websites as a back up that is good, but it is the communication that is critical when the shipment is live.
5.3. Fact Finding
If you are considering shipping to an FS agent you have not used before, but one of your close agent partners has, it was felt reasonable to be able to request their feedback on the agent in order to make a decision on usage.
5.4 Specialist Requirements on Operations
It will be fully understood that if any FS agent seeks a specialist agent that (for example) holds a specific security licence to execute a shipment, and the FS agent in the country of import/export does not, then the FS agent seeking such a licence will be compelled to go outside the network to another agent to fulfil their need.
FS will continue to seek high quality agents but due to the one agency rule, and the fact that recommendations are exhausted; we sometimes cannot obtain the perfect
candidate with every criterion to join the group. As such outside agents can be sought to work with FS agents on specific shipments.
5.5. Right to Refuse and Enquiry
Within reason, the option to refuse very difficult and time consuming requests or quotations is enforced.
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6. SALES
6.1. Recommendation Form
A new FS official Five Star Recommendation Form has been designed and sent to all FS Prime Contacts, and is also available on request from the President.
This form is to be used by all FS members clients in future to send directly to their suppliers (or back to the FS agents) so they can influence the company making the shipping decisions on ex works movements currently not being handled by Five Star agents.
6.2 Sales Leads Forms
Have also been sent to the FS Prime Contacts and are available on request from the President, if needed.
They should be used by each FS Member to pass a fully qualified sales lead on and its purpose is to eradicate vague unqualified leads that have circulated around the group in the past.
6.3. Central Sales Offices
Has no support and as such the group will never adopt any centralized office or personnel to undertake sales to international corporations or bid for tenders (for example)
FS members wish to run their own businesses as they see fit and do not want a Big Brother Network overseeing them.
6.4. Five Star Branding
Members are encouraged to show they are a member of the network in their own websites, and business stationery, and to brand themselves to the network by means of using the supplied Five Star Logo.
6.5. Usage Surveys
2010 saw the results from our first usage survey and as a result for the first time we could identify our proactive and inactive agents
I would like to request that you find a system to record all your shipments that YOU generate and route to your fellow FS partners. (Not their routings to you), so in the future when the survey is conducted, the process to provide this data is much easier for you to supply.
6.6. Conducting Your Own Surveys
Do-it- yourself surveys have been discussed and it was decided everyone is free to conduct them.
The principle purpose is to find out why your company may not be receiving as much business as other agents. (I.E. rates too high or service or communications too slow) Only when you know the reasons can you act to rectify them and improve the service you offer to your partners.
6.7. Business in General.
6.7.1. Prior Relationships & Business
It is understood that old business relations must be maintained for old traffic, but it is now a high priority of the group to offer new business to our members, and even compare quotes from Five Star members with your established agents.
6.7.2. Sharing Sales Leads and Copies of HBLs / HAWBs
It is agreed in the group that this information must be shared as often as possible.
Routed traffic, (shipments not being handled at either side) and details of client paying the shipping must be sent to agent in the relevant country for sales chase up.
6.7.3. Qualified Leads Only.
All leads must be qualified with ALL the required information. (Input will equal output)
All leads must be actioned and answered within one week while they are live, and not allowed to go cold. (Refer to Section 6.2 – Five Star Sales Lead Form)
6.7.4. Rates Supplied to Fellow Members
All rates must be honest net-net rates.
For agents that come in with net-net rates too high, it is right to ask for a copy of the original quote to check.
All members must respect the nature of confidentially involved in all client-business relationships.
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7. AGMS
7.1. AGM – Dates & Duration
The AGM will be held every year, in the same week, but checks on local holidays or restrictions to services must be cleared prior to an AGM being confirmed at a venue.
The duration will depend of numbers attending but an AGM will not be less than 2.5 days.
7.2. AGM Attendance
All Five Star Members are now expected to attend an AGM at least once every two years and to be fair must attend the AGM that is held closest to their home country.
All new incoming agents must attend the AGM in their first year.
7.3. AGM Absences
Only a very valid reason (e.g. serious health condition) will be accepted for not attending an AGM.
If a prime contact cannot attend, we expect a deputy or manager to attend to represent your company.
7.4. AGM Locations
AGM locations can only be dictated by host countries that volunteer.
The group’s consensus is that the most ideal situation is to have the AGM alternating one year in an inexpensive and conveniently placed location and the next year in an exciting location that will be equally attractive to many.
Due to the very low attendances from local agents in South America and Africa the AGM will not be held in these continents again.
7.5. AGM - Charity Scheme
It was agreed that such a benevolent scheme to help various global needy causes be introduced in 2010. This scheme however, will rely only on voluntary donations and will not be compulsory for any member. All donation amounts must be left up to the members, and donation amounts must be kept confidential.
Each year the cause for the scheme will be identified and located in the host country of the AGM. The AGM Host will identify the cause and advise the members (via the President) details of the aim of the cause.
The FS delegates may visit the recipient of the donations during the AGM.
Once the project is announced all donations are to be sent to the AGM Host prior by wire transfer (bank details will be provided by host) or in person at the AGM.
Once all the funds have been collected at the AGM the Hosts will arrange either a presentation at the venue for the hand over of the funds, or will visit the charity on site.
Photos and an announcement on how the total funds raised will appear in the “charity” link (far left top tool bar) of the FS Website, and the 5Q magazine.
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8. Final Understanding of Code
8.1 Confirming Your Agreement to Abide by this Code of Conduct as a Full Member.
In order to confirm your understanding of the code, and that you agree to the Agency Agreement the code is annexed to, you must email back to the President stating that you have received them and that you agree to abide by them as a group member.
Member Agents who do not reply and confirm will not be deemed official members until they do so.
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