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FREQUENTLY
ASKED QUESTIONS
FAQ
The questions and
answers in FAQ represent the policies and practices of GTO and /
or GTO Global Transport, Inc., in accordance with all legal
jurisdictions and / or governmental authorities and / or the GTO
Bylaws. The content of FAQ may be modified from time to time as
deemed necessary or appropriate by GTO Board of Directors.
| Q. |
Does GTO have more than one member
per location ? |
| A.
|
No.
GTO has only one member per location worldwide. As
stipulated within the GTO Bylaws, there be more than one
company member per location ( country or city ) worldwide.
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| Q. |
Does GTO have membership rules ? |
| A.
|
Yes. The
membership rules are known as the GTO Bylaws.
If a
company possesses all of the qualifications required for
membership and proceeds to complete a membership
application, the GTO Board of Directors reviews the
information.
If
the GTO Board of Directors determines the membership
applicant does qualify for membership in GTO, the GTO
Bylaws are then introduced for review by the membership
applicant.
As a
part of the membership approval process, the applicant
mustonfirm acceptance of the GTO Bylaws, as a condition
of becoming a member of GTO.
The
GTO Bylaws are rather basic by design. They primarily
address those areas of interest to forwarding
companies everywhere.
As
conditions of maintaining membership in good standing,
all GTO members are required to promptly respond to
inquiries from other members of GTO. Additionally, GTO
members must perform in a professional manner, in all
regards, when co-operating with other members of GTO. In
all cases, GTO members must timely fulfill their
financial obligations to other members of GTO, GTO HQ and
vendors involved in various GTO member programs.
The
GTO Bylaws mainly involve compliance with rules of
membership dedicated to observing proper business
practices.
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| Q. |
Does GTO have any type of program
allowing companies to join for a given period as an
observer ? |
| A.
|
Companies
becoming members of GTO are expected to do so on a long
term basis. If GTO allowed companies to
enter and depart the membership after a review period of
a few months, co-operation between GTO members on a
global basis could not be developed successfully. GTO
members would therefore be extremely
hesitant to share sales leads and / or routing orders, if
companies became members for short spans of time
to simply observe GTO activities.
GTO
has a number of existing member programs involving air
/ sea transportation, cargo insurance and many
other service areas. We shall introduce / implement
additional GTO member programs in the future as GTO
continues to develop. Such GTO member programs frequently
require long term member participation in order to reach
the planned objective, in each case.
The
GTO Global Concept partially involves the
building of a global network of independent, qualified,
honest and locally-owned forwarding companies working
together to reach common goals. Such an objective
requires long term participation with the gradual
development of positive co-operation between members of
GTO, on a global basis.
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| Q. |
What
if the cargo volume of my company is almost all sea
freight with very little air freight activity or vice
versa ? Must the cargo volumes be
balanced ( air versus sea ) to become a member of GTO ?
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| A.
|
No. Some GTO
members handle a greater volume of sea freight than air
freight and vice versa.
GTO
members must have the ability to handle both sea freight
and air freight as a condition of membership in GTO,
without regard to which service area may represent
the greatest area of activity for the member.
One
of the reasons many companies have joined GTO is to
improve their business activities in the area of ( air or
sea ) where they may have a lower volume of cargo. As
membership in GTO provides global access to excellent
agents for the handling of both air and sea cargo,
a GTO member can then concentrate on building both areas
of activity without the necessity of constantly
pursuing agents on a worldwide basis.
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| Q. |
If
my company becomes a member of GTO, is my company
required to terminate existing agency relationships with
non-GTO forwarding companies ? |
| A.
|
No. GTO does
not wish to interfere with the business activities of any
GTO member.
The
GTO Board of Directors is well aware of the fact
virtually all international forwarding companies have
some agents in given locations worldwide. In some cases,
agency relationships may be very productive and may have
been in place for a number of years.
However,
GTO does strongly encourage co-operation with GTO members
whenever and wherever possible. Co-operation on a member-to-member
basis is vital to the objective of strengthening GTO.
If
your company becomes a member of GTO, a GTO member
located in a given city / country may contact your
company in connection with co-operation and your company
may have an existing agent in the same location. In such
a circumstance, your company would still be asked to
assist the GTO member initiating the inquiry.
The
concept of GTO is one whereas members have access to
professional reputation whenever and wherever needed on a
global basis.
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| Q. |
If
my company has exclusive agency agreements with one or
more forwarding companies in various parts of the world
and we would be prevented from entering into co-operation
with given members of GTO, may my company still become a
member of GTO ? |
| A.
|
If your
company has existing exclusive agency agreements with
forwarding companies in various parts of the world and
such arrangements would prevent co-operation with members
of GTO, your company should give no further consideration
to membership in GTO. While GTO does not ask members
to terminate agency relationships with forwarding
companies outside the GTO network, GTO does expect its
members to have the freedom to assist and otherwise co-operate
with other members of GTO, without restrictions as may be
experienced with such exclusive agency agreements.
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| Q. |
Can
my company include an agent of our company under our
membership in GTO, as a
branch office ? |
| A.
|
No. In
accordance with the GTO Bylaws, every GTO location must
be under the direct ownership, management and supervision
of the GTO member representing the location, in each case.
Otherwise,
GTO would have numerous locations throughout the world
which be represented by agents of members of GTO. As a
result of such a circumstance, there would be no
accountability with regard to the performance of
services and / or timely fulfilling financial obligations.
In
all cases and all locations, GTO members must be in a
position to be fully aware of the fact they are co-operating
with a member of GTO, regardless of whether it is the
main office or a branch office.
GTO
members are encouraged to introduce their agents to GTO,
if the location(s) is still open for expansion.
Many companies joining GTO were initially
introduced by another member of GTO.
However,
in every location worldwide, the location must be
represented by a member of GTO and not the agent of a
member in another location.
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| Q. |
Does
GTO assess an initiation fee or membership processing fee
? |
| A. |
No. GTO
assesses no such fee.
|
| Q. |
Does
GTO hold membership meetings ? |
| A.
|
Yes. GTO
holds an annual GTO World Conference in June of each year.
The
Annual GTO World Conferences provide excellent
opportunities to GTO members to have one-on-one
meetings with other GTO members from locations
throughout the world. New agency relationships are formed
and existing relationships are expanded as GTO members
meet and discuss mutual sales efforts, the production of
routing orders, handling and service arrangements and the
many other areas involved in international agency
representation.
GTO
HQ has the opportunity to present an overview of GTO,
with regard to the present state of the organization and
the status of various projects and plans for the future.
GTO HQ reviews all GTO member programs to allow each
member to fully understand the many opportunities
available.
In
many cases, GTO program vendors also have representatives
available to meet with member of GTO, in order to answer
any questions and address any issues as may exist.
All
GTO members are encouraged to participate in the Annual
GTO World Conferences.
The 2nd
Annual GTO World Conference is being held in Miami (
Florida, USA ), on June 11 14, 2001.
The 3rd
Annual GTO World Conference shall be held in Denver ( Colorado, USA ), on June 10 – 13, 2002. Conference registration is now taking place.
The 4th
Annual GTO World Conference shall be held in New York (
New York, USA ), in June, 2003.
The 5th
Annual GTO World Conference shall be held in Milan (
Italy ), in June, 2004.
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| Q. |
If
my company should become a member of GTO, are we required
to participate in all existing and future GTO member
programs ? |
| A.
|
No. All GTO member programs are optional. Any costs associated with GTO member programs are clearly
defined in each case.
GTO member programs presently include but are not limited to the GTO Cargo Insurance Program and the GTO Sea Cargo Program.
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| Q. |
Does
GTO have any member programs involving international
transport and access to a common sea transport bill of
lading ? |
| A.
|
Yes. One of
the GTO member programs is the GTO Global Transport Sea
Cargo Program.
Under
this excellent program, GTO members can have access to
the GTO Global
Transport, Inc.,
bill of lading. Very precise rules of participation have
been established to protect GTO Global Transport, Inc.,
the carriers and the GTO members participating the
program.
GTO
members participating in the program are doing so as
agents of GTO Global Transport, Inc., which is a
sister company of GTO and an NVOCC with operating
authority from the U.S. Federal Maritime Commission.
This
GTO member program includes the GTO Sea Cargo
System, which is an Internet-based bill of
lading registration system. Each shipment moving through
the system is automatically provided with NVOCC insurance.
All rate filing requirements are addressed on those
transports moving from or to points in the United States.
Additionally,
the GTO Sea Cargo System include
shipment tracking / tracing capabilities via GTO Tracking.
The export / import customers of GTO members can utilize
GTO Tracking via the website of GTO Global Transport, Inc.,
or GTO members can also link GTO Tracking direct to their
websites, if desired.
Also,
the GTO Sea Cargo System allows GTO
HQ to gather statistics as to cargo volumes and carrier
use. Such information shall be utilized to
negotiate with given carriers to obtain lower rates as
the membership gradually increases participation
in the program with increased volumes.
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| Q. |
Does
GTO have a member program involving air cargo ? |
| A.
|
GTO is
presently developing the GTO Global Transport Air
Cargo Program , which is scheduled to be introduced
and implemented In August, 2002. The
program shall involve availability of the GTO Global
Transport Airwaybill, with GTO members acting in the
capacity of agent. The program shall also involve a
shipment registration system as well as tracking /
tracing capabilities under GTO Tracking.
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| Q. |
Does
GTO have a program where members can buy air or sea cargo
insurance as a service to be sold to their export /
import clients ? |
| A.
|
Yes. Another
GTO member program is the GTO Cargo Insurance Program.
GTO
has joined with Roanoke Trade Services ( U.S. ) and
Alexander Forbes ( U.K. ), to create and implement this
excellent cargo insurance program.
The
program includes an outstanding global air / sea
insurance policy underwritten by Lloyds
of London. GTO members participating in the
rogram have the opportunity to buy air / cargo insurance
to be sold at higher rates to their export / import
clients on a worldwide basis. The GTO member, in each
case, has physical possession of the Lloyds Certificates,
as full participants in the GTO Cargo Insurance Program.
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| Q. |
Does
GTO plan to take advantage of the collective cargo volume
of the worldwide membership to obtain lower buy rates on
transportation and
other services ? |
| A.
|
Yes. The
growing global membership of GTO represents massive
collective buying power in connection with air /
sea transportation, cargo insurance and many other
services utilized by freight forwarders on a global basis.
GTO
member programs are designed to secure the involvement of
members of GTO in these various service areas. The
objective, in each case, shall be to gradually secure the
participation of most, if not all, GTO members in such
programs. Doing so shall allow GTO HQ to utilize such
collective strength to negotiate with air / sea carriers
and other vendors on behalf of the entire membership of
GTO. However, the program must receive member
support in order to reach such objectives.
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| Q. |
May we have a copy of the GTO
membership directory prior to reaching
a final decision as to whether to join GTO ? |
| A.
|
No. Until
recently, GTO made the global membership directory
readily available to all companies interested in
membership.
Unfortunately,
many companies expressing interest in membership in
GTO, wanted only to gain access to the membership
directory. In some cases, other global forwarding
networks wanted access to the directory to solicit
members of GTO, to join their organizations. As a
result of such negative activities, GTO was forced to
establish a policy of restricting access to the
GTO global membership directory.
However,
all GTO members are located in the GTO Global Transport website under Global
Locations . All GTO members worldwide are also
representatives / agents of GTO Global Transport.
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| Q. |
If
my company is a member of another global forwarding
network of a nature similar to GTO, can my company also
hold membership in GTO ? |
| A.
|
No. The
GTO Bylaws prohibit such dual global forwarding
memberships.
Companies
are not accepted into the membership of GTO, if they hold
membership in another global forwarding network of a
nature similar to GTO.
If
a GTO member joins another such global forwarding network
after becoming a member GTO, the GTO Board of Directors
shall terminate the membership of the GTO member at the
point such an act is verified by the GTO Board of
Directors.
The
managers of GTO give their full attention and support to
the global membership of GTO. Such attention and support
is expected in reverse order. A company holding
memberships in two or more such global forwarding
networks cannot sufficiently participate in the programs
of two or more such global forwarding networks.
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| Q. |
Does
the policy involving global networks involve local or
national Associations or such global groups as FIATA ? |
| A.
|
No. The
policy pertains only to global networks of independent
forwarding companies of a nature similar to GTO.
Such
global forwarding networks may be slightly different from
GTO, in that they may allow three to five
members per location or perhaps may have
other characteristics slightly differing from GTO.
However, almost all global forwarding networks have a
basic concept that is very similar in nature.
FIATA
and similar global organizations are structured in an
entirely different manner than GTO and similar
global forwarding networks.
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| Q. |
If
my company does become a member of GTO, may we share the
GTO membership directory or other GTO information with
some of our
agents ( non-GTO forwarders ) to assist them with their
agency needs ? |
| A.
|
No. At all
times, the GTO membership directory, GTO NEWS and all
other information originating from GTO HQ, remains the
copyrighted and legal property of GTO.
Membership
in GTO and / or the payment of annual membership fees to
GTO, does not entitle any member to share any degree of
such information with non-GTO companies. Sharing such
information with non-GTO interests can lead to the
termination of the membership of the member company
involved in such an act.
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| Q. |
If
our company becomes a member of GTO, can we offer
suggestions improve or otherwise assist GTO ? |
| A.
|
Yes, of
course. At all times, GTO HQ is open to any and
all suggestions from members where any degree of
improvement may be realized in the global operation of
GTO.
The
operation and building of GTO is a team effort and
members throughout the world are obviously a part of the
team. Without the members, GTO would not exist.
GTO
HQ always welcomes suggestions and involvement by members throughout
the world.
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| Q. |
What
if my company has plans to open a branch office or branch
offices in the future ? |
| A.
|
The GTO
Bylaws stipulate a GTO member cannot open a branch office
in any location where a GTO member has been approved and
the location is represented in the membership of GTO. Under
the GTO Bylaws, opening a branch office in the same city
where a GTO member already exists can represent grounds
for termination of the GTO member opening such a branch
office. The purpose of this provision
of the GTO Bylaws, is to provide market protection for
each member of GTO. Otherwise, GTO members may could be
reluctant to share sales leads, routing orders and / or
other information.
If a
company is entering the GTO membership has plans to open
one or more branch offices where GTO has not yet selected
a member or members, any such locations or locations can
be reserved for the future expansion of the GTO member.
However, such a discussion should take place
at the point the company is being processed into the
membership.
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| Q. |
If
my company has reviewed all of the information under
membership information and we have decided
to join GTO, what is the next step ? |
| A.
|
Complete
the membership
application
form
in this website area. The membership application
would be reviewed by the GTO Board of Directors. If
your company meets all of the membership qualifications of
GTO, we would immediately notify your company of the
precise amount of the annual membership fee applicable to
your company.
Additionally,
we would provide access to review the GTO Bylaws. Each
company becoming a member of GTO, is required to review
the GTO Bylaws and confirm acceptance as the rules of
membership in GTO.
The
membership applicant would then proceed to confirm
acceptance of both the annual membership fee and the GTO
Bylaws. Upon receiving such a confirmation of acceptance,
your company would then be approved for membership in GTO.
From
that point, the new member is introduced to the worldwide
membership by being presented in GTO NEWS ,
which is a weekly Internet newsletter originating from
GTO HQ. The new member is then encouraged to begin
contact with other members of GTO and to proceed to
review all GTO member programs.
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The questions
and answers in this FAQ represent the policies and practices of
GTO and /
or GTO Global Transport, Inc., in accordance with all legal
jurisdictions and / or governmental authorities and / or
the GTO Bylaws. The content of FAQ may be modified
from time to time as may be deemed necessary or appropriate by
the GTO Board of Directors.
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