Financial Protection

Magenta Logistics Network ensures that all charges due within the network will be paid on or before the agreed terms. Our Payment Protection Program is governed by the following guidelines:

• Prior to transacting with Magenta members, please verify from the network agency list that your partners are in good standing.
• Send pre-alerts (HAWB, MAWB, and Billing) within 14 days of shipment
• Agent must submit a statement of account (AR/AP) within the first 10 days of each month
• Members must be updated with membership payables
• Agent must pass the screening process of Magenta Logistics Network
• Agents must file a late-payment-report within 45 after the payment due date with 14 days allowance from the due date. Then, the claim report can be filed within days after the due date.
• Only Magenta members are eligible for security claims. Members with expired status are not entitled to submit claims.
• Our security blanket covers for invoices within a maximum of 45 days before the claim date. Magenta Logistics Network does not provide coverage for shipments with payment terms of more than 30 days. Immediate dispute protection is covered to USD 5,000 per member, and will increase to USD 10,000 once you reach your third year in the network. Dispute protection is covered to a maximum amount of USD 20,000 for members that are in the network for already 5 years and above, with a self-participation of 10% claimed amount. 
• The lower coverage of two transacting agents is considered for claiming purposes. Charges that have not been mutually agreed to prior to any shipment are excluded from the payment security.
• Our payment security will only cover up to 50% of the claim amount, if the claiming agent is part of other freight forwarding networks. It is at 0% if both parties (claiming agent and the other party) involved are members of the same network outside Magenta.
• Our Security Coverage is limited to, general cargo and specifically not covering dangerous goods, perishable cargo, personal effect and collect cargo beyond USD 2,000.00. In addition, security coverage is not provided for non-conformance with service levels, shippers/consignees connected with Internet mail services such as E-Bay, lost or damaged cargo, invoices covered by member’s Error and Omissions Insurance or other insurance coverage, 3rd party damages, currency exchange fluctuations, goodwill payments, illegal transactions, legal fees or interests.
• Any single transaction/invoice beyond USD 10, 000 is not eligible for the claim.
• Security coverage is only granted to members that have attended the latest conferences. Magenta Logistics Network reserves the right to refuse any claims from members who have not attended the last conference.
• Only invoices relating to the offices/cities that are registered will be eligible to participate in this fund i.e. if a company only registers its Hong Kong office but has several other offices in China, only invoices covering freight originating from destined to their Hong Kong office will be considered as eligible.
• Magenta does not cover for disputes caused by service errors
• Magenta only covers for freight charges
• Magenta reserves the right to update the above terms at any time
• For payment issues that have been resolved, the payee will undergo a 60-day probationary period for the purpose of payment monitoring. Management has the right to downgrade the payment status of members with payment issues to ensure that the entire network is kept safe.