As we all know, clear and puntual payment is the core of serious and profesional business transactions, which SCN always aims to keep high.
Our general guidelines on member to member payments are for all payments to be made at 30 days, with payment day before the 30th of the month. This coincides with most CASS payments and allows credit terms of origin agents to be shared over to the destination agent. For ocean shipments this time frame allows for a high percentage of shipments to have arrived or be close to arrival date also effectively sharing credit between members.
These are of course not normal times!
Many airlines are requesting cash payments up front for airfreight charges, especially from China. This fundamentally changes the issue of sharing origin credit terms with destination. Giving 30 days credit would now mean that origin member is financing the operation for the destination member. In these cases, it can now be considered normal to request an immediate payment. We hope that origin members will allow a few days for payments to get through within the spirit of network collaboration
Most importantly, it is necessary in these cases for the destination member to transmit this to their client. This will probably mean a change in credit terms due to Covid-19. Unfortunate, and the client will not like it, but it is part of the reality we are living.
Above all we must insist on COMMUNICATION between SCN members. Agreements and any changes to previous agreements should be clear and agreed on BEFORE the shipment is initiated. Where possible, members are asked to respect SCN general guidelines. Where payment is required by the airline, destination members are expected to pay accordingly and puntually.
If you are not ABLE to pay or have not received payment due to lock down restrictions, please inform immediately and copy SCN too, so that we can monitor the situation and avoid unnecessary issues
We remind you that Securityplus! is here to protect all SCN members, with the usual conditions, in case an invoice ends in default. This is a solution for you of last resort. As SCN member, you must act responsibly and transparently. Of course if you have any difficulty, please do not hesitate in contacting us.
- David Cook
- President SCN
- dcook@securitycargonetwork.com
