FreightConnect Member Payment Recovery Support

1. Purpose

FreightConnect Member Payment Recovery Support is designed to assist eligible Freight-Forwarding Members in recovering certain unpaid invoices arising from genuine business transactions with other FreightConnect Freight-Forwarding Members.

Where the conditions of this programme are met, FreightConnect may provide limited payment support against an eligible unpaid amount.

2. Eligibility

The programme is available only to Freight-Forwarding Members who have opted into Member Payment Recovery Support.

An eligible claim must:

• Arise from a genuine business transaction between two active FreightConnect Freight-Forwarding Members.
• Relate to an unpaid invoice issued for services actually provided.
• Be reported to FreightConnect within 30 days from the date the invoice was issued.
• Involve a debtor who has entered formal insolvency proceedings.
• Be supported by the required transaction and payment documentation.
• Satisfy all other conditions of this programme.

3. Recovery Process

When an eligible invoice becomes unpaid, the affected member must notify FreightConnect and provide the relevant documentation.

FreightConnect will then make up to three documented attempts to obtain payment from the debtor.

If the invoice remains unpaid and the debtor has entered formal insolvency proceedings, FreightConnect will assess the matter under the Member Payment Recovery Support programme.

4. Payment Support

For an approved eligible claim:

The maximum of USD 3,000 applies to the combined support provided to a member during one membership year, regardless of the number of eligible claims.

5. Example

If an eligible member has an unpaid invoice of USD 5,000 and the debtor subsequently enters formal insolvency:

The eligible payment support would therefore be USD 1,500.

If the unpaid invoice is USD 12,000:

However, the maximum payment support available is USD 3,000 per membership year.

6. Required Documentation

The member may be required to provide:

• Copy of the unpaid invoice
• Proof of the underlying transaction
• Service completion or shipment records, where applicable
• Relevant quotations, bookings or agreements
• Payment follow-up correspondence
• Evidence of the debtor’s formal insolvency
• Any additional documentation reasonably required to assess the claim

7. Situations Not Covered

Member Payment Recovery Support does not apply to:

• Unpaid invoices owed by Trade Partners.
• Transactions involving non-members.
• Ordinary late payments where formal insolvency has not occurred.
• Commercial disputes or disagreements regarding services, pricing, quality or contractual obligations where insolvency is not the cause of non-payment.
• Fraudulent, fictitious or deliberately misrepresented transactions.
• Amounts exceeding the programme’s applicable limits.
• Invoices not reported to FreightConnect within 30 days from the invoice issue date.
• Claims submitted outside the prescribed claim period.
• Transactions that do not satisfy the programme’s eligibility requirements.

8. Annual Participation Fee

Participation is optional and must be selected by the Freight-Forwarding Member at the time of membership application or renewal.

9. Claim Assessment

Every claim is subject to review by FreightConnect.

Submission of a claim does not automatically create an entitlement to payment support. FreightConnect may request additional information or documentation before making its determination.

10. Limit of Support

Member Payment Recovery Support is limited to 30% of the eligible unpaid invoice, subject to the USD 3,000 maximum annual support limit per member.

The programme does not provide full recovery of unpaid invoices.