Presentation on theme: "List of arguments as to why LTL members internally should require the use of NSAB NSAB is a Nordic agreement between eight parties. The parties are the."— Presentation transcript:
List of arguments as to why LTL members internally should require the use of NSAB NSAB is a Nordic agreement between eight parties. The parties are the four Nordic countries’ freight forwarder organizations (Iceland not included). In Norway the representative is LTL (Norwegian Logistics and Freight Association). The transport purchasers were Represented by the Norwegian Shippers Council (TF), which was a member organisation for NHO, HSH, Skogeierne and others. 1
Thus, every member of NHO was represented by their share in the agreement, for instance Norsk Hydro and Statoil. This means that a vast majority of Norwegian companies are backing the agreement. NSAB has existed since 1919, and the agreement has been updated on a regular basis throughout the years. Since 1959 the purchasers have been part to the standard agreement. 2
NSAB covers the areas of transportation, storing and clearance of goods in addition to other related services connected to freight forwarding. NSAB sets a standard for similar regulations all over the world. Thus, it is in accordance with the common regulations of our worldwide organization. However, our regulations impose a larger responsibility on the Nordic freight forwarders because we accept liability as carriers. 3
It is of vital importance to us that NSAB is implemented, because; Insurance companies are familiar with NSAB and offer less expensive insurance policies. If we deviate from NSAB the risk is that we are without insurance coverage, and if we can obtain special coverage it will be at a higher cost. We depend upon limited responsibility, i.e. 8,33 SDR per kilo for lost goods. Without this limitation there is a large risk of bankruptcy. 4
Our set of rules define our role as intermediaries. This means that we are not responsible for the helpers’ actions except for choosing capable people. Our lien on the goods is also the reason that we normally do not demand payment in cash on delivery. We grant credit because NSAB ensures a lien on the goods. NSAB imposes the same liability that we can reclaim from our contractors. Without NSAB we might run the risk of having a higher liability that the carriers have towards us. 5
Using NSAB cannot be demanded; Even if it appears from our rules that we are wokring according to NSAB, we cannot enforce our members to use NSAB. According to the Law of Competition, all parties are free to use NSAB. 6
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