After checking that their city is OPEN in the Territories and Fees section of the GLOBALIA website, the freight forwarder wishing to join the network will complete and return the Membership Application form, including all the data and additional documents that may be specified. If selected as a potential member, the applicant will complete and return 1) the Membership Agreement (signed and stamped), and 2) the Local Charges form.
4.1. Screening of Applicants
4.1.1. Verification: The GLOBALIA organisation may use the services of DUN AND BRADSTREET or other independent credit risk assessor to supply a financial report for the purpose of corroborating the financial data supplied by the applicant during the membership application process, and confirming that the applicant company is stable and solvent. A reasonable credit limit for each applicant will be proposed by the risk assessor. Should the applicant become a full member,this credit risk limit will be published on the GLOBALIA Intranet for other member companies and the GLOBALIA organization to view. The credit extended may only exceed the displayed limit when the two parties agree in writing, and under their own exclusive responsibility.
4.1.2. Financial Ratios: Applicants' liquidity and solvency positions should meet the following standards:
Liquidity ratio = (A/B + C/D) / 2 = the result should be equal or superior to 1.
(A = Current Assets YEAR-2 (includes cash, equivalents, accounts receivable, inventories, prepaid expenses). B = Current Liabilities YEAR-2 (includes bank loans and notes payable, long term debt due; 1 year, accounts payable, taxes payable, wages, salaries, bonuses payable). C = Current Assets YEAR-1 (includes cash, equivalents, accounts receivable, inventories, prepaid expenses). D = Current Liabilities YEAR-1 (includes bank loans and notes payable, long term debt due 1 year, accounts payable, taxes payable, wages, salaries, bonuses payable)).
Gearing ratio = (A/B + C/D) / 2 = the result should be equal to or less than 2.
(A = Medium and Long Term Debt YEAR-2 (Due 1 Year). B = Owners Equity YEAR-2 (Include shares/stock value, additional contributed capital, retained earnings and reserves). C = Medium and Long Term Debt YEAR-1 (Due; 1 Year). D = Owners Equity YEAR-1 (Include shares/stock value, additional contributed capital, retained earnings and reserves).
4.1.3 Insurance: Coverage by Errors and Omissions and Freight Service Liability insurance, as detailed below, is optional but highly recommended:
220.127.116.11. Insured Services:
- Freight Forwarder acting as Agent (Road, Sea and Air)
- Freight Forwarder acting as Principal (Road, Sea and Air)
- Non Vessel Operating Cargo Carrier (NVOCC)
18.104.22.168. Trading Areas: Worldwide
22.214.171.124. Limit of Liability:
- Errors and Omissions minimum coverage limit: 50,000 USD per incident or occurrence
- Freight Service Liability minimum coverage limit: 200,000 USD per incident or occurrence
4.2. Notification and Admission:
4.2.1. Notification: The GLOBALIA organization will make a decision on applications and inform the applicant in writing within 15 days of its decision.
4.2.2. Membership Agreement: If an application is approved, the GLOBALIA organization will notify the applicant by sending the Membership Agreement which the applicant will sign, stamp, and return.
4.2.3. Payment Protection Plan (PPP): The applicant should indicate whether or not he/she chooses to participate in the PPP in the space provided on the membership application form.
4.2.4. Admission: Once GLOBALIA receives the signed and stamped Membership Agreement, the GLOBALIA Organization will grant admittance to the new member which will thenceforth hold exclusive rights to operate as the GLOBALIA member in the city and/or territory assigned by GLOBALIA as long as it continues to meet its obligations set out in the Membership Agreement and Rules and Procedures. All existing members will be informed of the admission of the new member via an email announcement.
4.2.5. Listing: A profile of each member company will be published in the Agent Finder section of the password-protected GLOBALIA Intranet, and will be accessible to other network members only. This listing will include the member's trading name, location, contact details, bank details, local charges, and recommended credit risk limit, along with other pertinent information, such as any special capabilities or services offered.