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.

 

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.

 

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.

 

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 ?

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.

 

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.

 

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.

 

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.

 

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.

 

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.

 

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.

 

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.

 

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 Lloyd’s 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.

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.

 

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.

 

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.

 
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.

 
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.

 
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.

 
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.

 
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.

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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