We are very surprised that only a handful of members have so far registered for the Global Logistics Shield freight payment protection and many of these are new companies that have joined we believe partly BECAUSE we have this very unique and only professionally underwritten protection.

We even developed a new directory for the “GLS insured members” which we expect will be the first place any member looks when looking for a partner and obviously GLS members are preferred ones. The approved members have already noticed that they are now getting more request then before as some of the members are now directing more and more business to them. With the profit margins so low these days, how can anyone afford to take the unnecessary risk of working with someone that has not insured themselves and do not have a guaranteed reputation of always paying on time?

In case you have forgotten what GLS is all about herewith a brief summary:

Global Logistics Shield, a Hong Kong based provider of International Insolvency Protection Plans for the freight industry, is pleased to announce the approval of the first 4 members in the plan. GLS is an insurance program not too different than traditional credit insurance. Through the GLS plan members are covered up to $55,000 per insolvency occurrence when working with any other GLS member. The best way to describe GLS is a member based credit insurance plan, protecting all of its members from insolvency when working with other GLS members at a cost of only $500 per year. Global Logistics Shield screens all of its potential members through their partnership with International Freight Credit, a US based provider of Business Information Reports, Global Payment Solutions and International Debt Collections.

Traditional Credit Insurance can cost thousands every year and all coverage is contingent on the underwriter approving your customer, and still you are at the mercy of the insurer as they can cut or cancel coverage with little to no warning to you.

There are many advantages to being covered under the GLS plan, banks are more apt to lend money to customers that have their AR protected and will in many cases provide you with favorable rates. Freight Forwarders are beginning to require that their agents join GLS to ensure that all transaction between entities are insured and protected from possible insolvency. Global Logistics Shield will slowly become a standard of business in the logistics industry.

China Logistics Club will phase out members from next year that are not protected and will from next year only accept new members that are also going to be protected. The aim is to allow the owners of all CLC members to concentrate on developing more new business rather than chase slow paying partners around the world and letting them sleep easy every night.

CLC members was the first network to be offered this protection, but now it has been offered to 22 other networks that are also supporting the GLS protection. At our conference in Macau next month GLS will launch the freight payment protection to individual companies. You can see copies of the press coverage at: http://www.glshield.com/press-coverage.

Please visit the Global Logistics Site at www.glshield.com for more information.

GLS expect to have 2000 freight forwarders approved by the end of the year.