Easier Debt Recovery for Freight Forwarders?

img

European Justice Ministers announced an agreement at the end of 2013 to proceed with the European Account Preservation Order, or EAPO. According to law firms and other advisory boards, the progression of the proposal should provide some good news to businesses involved in shipping and transportation related to intra-European trade. The good news for those in the shipping or transportation industries means that this proposal, if passed into law, will make it easier to recover debts because it provides an avenue for the freezing of bank accounts throughout the continent.

More Harmonious
The goal of the proposal is to pass laws in the European Parliament that will create an environment with decreased barriers to intra-European trade. Currently, creditors are finding it difficult to recover debts that are held by debtors outside of the creditor’s domestic market. Part of this is due to the still poor, yet growing economies of Europe that are recovering from the global economic crisis.

Experts put their current estimates at roughly 2.6% of their yearly turnover to bd debts. Even more severely troubled by the difficulty in recovering debts over borders are the million or so small and medium-sized enterprises (SMEs). It has been reported that this group of creditors loses about 600 million euros per year as write offs because they are effectively scared off before even taking the first few steps of preserving the assets of debtors abroad.

Less Prohibitive

It’s widely understood that it is essential for creditors to have efficient access to the accounts of debtors before their assets have moved or dissipated. However, under the differing laws of the EU member states can create contradictory, confusing, and expensive processes for creditors attempting to recover assets from debtors. In fact, in some EU member states, it can be impossible for a creditor to obtain the information regarding a debtor’s bank details and the whereabouts of their bank accounts. Also, in countries that do allow it, the fees that are required can only be described as prohibitive.

Those promoting the proposal believe that the EAPO should be pleased by the benefits the proposal will bring to anyone transporting goods via, land, sea, or rail. According to those with an in depth knowledge of the law, bad debtors will have their assets frozen until a judge has made a determination in regards to the debt in question. It also essentially allows creditors access to the tools to properly be informed of their debtor’s account whereabouts and activities. Also, it will eliminate the prohibitive barriers that are present in some member states.

What It Doesn’t Change

The EAPO does not make any changes to the systems of the country in regards to the seizing of assets. Instead it will become a procedural path for companies to follow and allow for creditors to act more quickly to effectively claim their debts from bad debtors.

Be aware that this has not come into effect yet, as it is still awaiting a final agreement. Following such, it must be agreed to upon by the European Parliament, and after that it is up to the member states to ratify the law and bring it into effect.

Member Testimonials

testimonial
X2 always thrives on raising the bar when it comes to connecting people. X2 conferences are one of a kind! As the founding member, we are happy to be in X2 Elite and the X2 Projects Network.
testimonial
"We believe in limiting memberships to a minimum and have found our home for projects as well as general cargo within the X2 family."
testimonial
I've been in the business for over 30 years, I have never had or experienced such and effort by the management team of the network to get members to participate and make their membership work for them.
testimonial
The professionalism and organisation shown from the X2 team totally blew us away.
testimonial
Richard is an innovator, what I find great working with him is that he can see the future.
testimonial
I was positively surprised from the amazing organization and specially the commitment of all X2 Team making this event incredible for everybody and in all complete fields.
testimonial
We have to skip the networks that are founded only for the benefits of the founders Quality and not quantity.
testimonial
We found the best way to build trust is to go to the conference and meet with people, talk to them and get to know them.
testimonial
As a new member of the X2 Network, we are very impressed by the organization and its professionalism and focus on mutual business development. X2 has already given us some great opportunities to work with likeminded partners across the globe on both project and general cargo.
testimonial
Great energy and drive throughout the X2 Team and high profile Network agents to complement each other’s business across the globe and help achieve positive results. Keep up the good work!
testimonial
X2 is like a family! We have met so many amazing partners. There has been so much success with the relationships we have developed throughout the years and most importantly friendships that will last a lifetime. And we love the networks' reach!
testimonial
We have been a member of X2 since 2014 and have attended six conferences. Richard and his passion for the network with his enthusiastic team have arranged all the conferences perfectly considering every single detail. We made many friends and found new global partners to work with at the conferences. X2 is one of the good solutions for our needs and we hereby thank them for their efforts.
testimonial
I have attended a lot of networks and annual meetings in the freight industry, but I have never come across a network like X2. This is another level. It is a pleasure to be a part of the X2 network - the professionalism, the attention to detail, the broad and knowledgeable staff - everything at the highest level.
testimonial
X2 is really an excellent logistics network, with a well-organized team that is always thoughtful and helpful. We are happy with X2 and expect a long journey together.
testimonial
"At X2 Network we found a group of partners that really want to build a long-term relationship. Companies are run by people that really care about your business and success. X2 Team has been really supportive and very active to develop new opportunities for your business''.

Our Partners

X2 Conference

Our special networking event is about smart freight forwarders coming together to grow and develop business within the group by providing an opportunity for all members to gather in one place to form and extend personal relationships.

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

NEW YORK

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

sao paulo

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

london

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

dubai

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

bangkok

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

hong kong

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

tokyo

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

sydney