Red Alert System

 

Dear Members, we would like to get your feed back from each and everyone of you regarding possibly introducing an Early warning payment – Red Alert System.

The idea behind this is to ensure all ASA members pay each other in an agreed time frame (this agreement made between each member regarding these transactions) this can be 30-45-60 -90 days per your agreement with the other party. Then if the payment agreement is not kept too you should notify ASA Management.

We want to discuss this subject due to freight rates in the past year sky rocketing.

For example a single 1,000 + Kgs airfreight shipment from Asia to Europe or South America can be around USD 10k, or a couple of Sea freight boxes can again be 10K +  which is about 4-5 times more than it was in 2019/20.  So its very easy to see credit facilities jumping up massively in a single month.

Right now we have a very good record of payments among our ASA members so we are not wanting to suggest otherwise, its just a discussion as do we want to keep a closer notes as a group re possible delayed payments.

If you do want to adopt this Red Alert System you must realise it will only work if you always report to ASA Management any payment delays beyond agreed payment terms, so we can get a complete picture and then circulate this info to all ASA members, probably on a monthly basis.

The downside of this Red Alert System is if once an ASA member is reported as a slow payer it could effect future business opportunities with other ASA members as all members will see they have been high lighted as a slow payer, even if payment is delayed by just one week without the the agreement of the other member.

If the general consensus is we should adopt some kind of Red Alert System then we will have to set the ground rules regarding what is not an acceptable delay beyond the agreed credit terms, also a system to take off a listed member once payment received, but maybe if regular reports of slow payments they stay on the list etc.etc.

We would welcome your comments and suggestions on the above please ensure you all reply one way or the other.

Many thanks for your help

Best regards

Robert & Roy

Setting Credit Limits

 

Dear ASA Members, recently ASA Management have spent a great deal of time helping members to recover overdue monies from Atlas Logistics Bangladesh, fortunately Atlas have been paying these very long overdue debts, all be it very slowly.

 

During this exercise of helping collect debts for our members, we were amazed to see that one member had advanced credit of over USD 20,000 in one month. Now I don’t know what due diligence they use in setting their credit limits but that’s awfully high to my mind for a first time transaction.

Now ASA do not want to be setting credit limits for its members

When setting credit limits you should continue to make your own credit checks, but we would suggest that you contact me on transactions of say freight costs of USD 10,000+  asking if we can give some background to the ASA member, such as number of years they have been a member, had we ever had previous complaints of delayed payments. In most cases I’m sure there will not be a credit issue as we did carry out due diligence and taking references on all members when they joined, and we do also update our bad debtors checks monthly.

Please note this is only a suggestion, you can choose to ignore this especially if you already have a good trading history with any ASA member.

Many thanks

Best regards

Robert Shelton

Chairman of the ASA Committee

Air Focus – Mongolia

 

We are pleased to welcome Air Focus to the ASA family.

Air Focus LLC was established in 2017 by a group of experienced and highly motivated people and since has become a well-known name for freight forwarding business in Mongolia.

They offer Air freight, Air/LCL, LCL, LTL, FCL services and also handle DGR goods, live animals, diplomatic and personal goods, food & beverage, and many export and import project shipments for Oyu Tolgoi and other gold mines.

You can count on Air Focus to carefully handle your shipments from/to Mongolia for air or ocean freight export or import.

They are looking forward to developing successful business with all members at ASA Members.

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