Section 1 Financial Administration

Transcription

1 Section 1 Financial Administration Each Member Company appoints Palletline Ltd as an agent to act on its behalf in respect of: The administration of billing inter-depot trading transactions including but not limited to the calculation and raising of invoices; For the collection of monies owed to or by that Member Company in respect of Palletline network business (including without limitation) collection and delivery revenues due to a Member and collection and delivery costs payable to a Member, inter-depot goods in transit claims agreed in accordance with the Palletline Charter Section 6, Hub Fees and other Palletline charges and the satisfaction to other Member Companies of such monies owed. By appointing Palletline as an agent on its behalf, the Member during the period of Palletline s appointment as an Agent irrevocably authorises Palletline to: Set off monies collected from other Members on behalf of that Member against monies owed by that Member to Palletline and/or other Members in satisfaction of the monies owed between the Members and/or to Palletline; Issue, resist, compound, enforce, negotiate or defend disputes or proceedings on behalf of that Member against other Members or ex-members, where Palletline and the Member have agreed in writing. The Member will pay all sums due, as notified to the Member by Palletline from time to time, by their due dates as set out in this Charter. It is a fundamental requirement of Palletline membership and a condition of the Membership Agreement that the Member ensures that it has and will have sufficient cleared funds in the account designated to Palletline for the collection of Direct Debits to meet all of the Member s payment obligations on the specified dates. Notwithstanding the procedure above, Palletline will not be liable to the Member for any direct, indirect or consequential loss (all three of which terms include pure economic loss, loss of profits, loss of business, depletion of goodwill and like loss) whether in contract, tort, misrepresentation, under statute or otherwise, howsoever caused (including without limitation as a result of negligence) by any delay or failure to collect monies owed to that Member in full or in part and/or to pay such monies in full or in part to the Member through: The Insolvency of a Member; Any other contractual or other dispute between Members; Errors or inaccuracies in respect of the consignment information; and The failure for any reason by any Member to make a payment to Palletline Without prejudice to above, the Member acknowledges and agrees that, in acting as Agent on behalf of the Members, Palletline s only liability in respect of the debts owing between the Members is, subject to above, the payment to Members of the amounts Palletline notifies the Member it is due to pay and Palletline does not become a debtor or creditor in respect of the original debt accrued between the Members and nothing in this Charter shall infer any joint and/or severable liability of Palletline with any Members in respect of any monies owing between the Members. 1

2 Palletline reserves the right to withhold any payments owed to a Member who is leaving the Network until all monies owed by that Member have been settled. This would include setting off against the bond that is required to be paid as part of the membership agreement. Inter-depot trading tariffs and applicable Palletline consignment and pallet charges are calculated on the central computer system, Contrado, based on the Palletline Charter rates in force from time to time. If the Member conducts trade with other Members outside of the Network, it does so at its own risk and such transactions fall outside of the Agency arrangement contained in this Charter. The Member does not have a right of lien over goods belonging to another Member s customer. To limit the Network from potential financial exposure, Palletline reserves the right to limit the ability to input to the System and notify the Member of the input imbalance limit. If a Member exceeds the input imbalance limit, Palletline may require a financial bond. All Member Companies must sign a direct debit mandate for the collection of Hub Fees and contra payments in respect of all transactions with Palletline Members Any Member Company whose direct debit mandate is not honoured or whose bank transfer is recalled by the bank may be suspended from the Palletline System, for such duration as the Board of Directors may determine pending investigation by the Board of Directors notwithstanding the Disciplinary Procedure in Charter Section 1. It is the responsibility of the Requesting Member to ensure that manifested consignment information is accurate as this is fundamental to the charges applied. Member Companies are required to investigate and resolve any consignment and/or invoice dispute on a prompt and timely basis. 2

3 Right to Financial Information Financial Information Members are required to comply with requests for the provision of financial and key operating information as contained within the Charter. Palletline will obtain from its Credit Rating Agency the following information on an annual basis which will be retained by the Palletline Centre in the Member s central file: Full annual accounts, including detailed profit and loss statement and balance sheet - no later than nine calendar months after the Member Company s financial year-end Full details of the shareholders of the Member Company or the Shareholders of any intermediate or ultimate holding company of the Member Company If the above information is not available the relevant member(s) will provide this when requested by Palletline. In addition it is the member s responsibility to provide a copy of its Operator Licence when requested which Palletline will retain in the members central file. The obligation rests with the Member Company to ensure that the central file referred to above remains current at all times notifying any changes to the information held on this central file as soon as reasonably possible. Right to Request Management Accounts In addition to the information to be provided above, Palletline may from time to time request at any time up-to-date detailed management accounts, including for the avoidance of doubt profit and loss account, balance sheet and cashflow forecast. Right to Financial Audit If Palletline in its reasonable determination has any concerns about the financial position or business viability of a Member Company, the Board may appoint any suitably qualified person to examine the financial records and operations of the Member Company (the Examination ). The Member Company shall, upon Palletline providing the Member with at least two days written notice, allow such person(s) as Palletline may nominate to access the Member Company s premises during office hours to conduct the Examination, and the Member shall allow such Palletline representatives access to such areas of the Member s premises and to any of the Member s relevant records as may be reasonably required in order allow Palletline and/or its representatives to carry out the Examination. Palletline shall keep confidential any business information obtained during the course of an Examination except insofar as it needs to disclose the information to its professional advisers. This duty of confidentiality will not apply to any information which: is publicly available or becomes publicly available through no act or omission of Palletline; or if Palletline is required to disclose by law or an order of a court of competent jurisdiction. 3

4 Financial Transactions Financial transactions include those associated with Palletline network business. In respect of transactions associated with Palletline network business, the following charges apply. These include but are not limited to: Hub Fees Non Compliance Fines Meeting Recharges Any other sundry charges (marketing fees, IT maintenance fees and any others so determined) Commercial tariffs (inter-depot rates for collections, deliveries and related surcharges) Basis of Hub Fee invoicing All Hub Fees (unless otherwise agreed in writing by the Board) will be collected by Palletline by direct debit on the last working day of the month following that in which the fees occurred. Hub Fees (and related management charges), and related fees (such as marketing fees) will be invoiced on a weekly basis. Fines for non-compliance will be invoiced on a monthly basis. Palletline invoice Hub Fees on the basis of manifested input volume. Members are responsible for ensuring their consignments are accurately manifested and the Hub is responsible for ensuring that pallets are scanned appropriately so that the correct Hub Fee is applied. Members are required to check the weekly Hub volumes on a timely basis and investigate discrepancies. If Members do not raise any queries or disputes in respect of the weekly Hub volumes invoice within 5 Business Days of the invoice date, then the invoice will be deemed to be correct. Inter-Depot Consignment Checks and Charges All manifested consignments must be checked at least daily by the appropriate Member. All consignment and pallet level queries (Dimension Checks, Service Failures & Financial Adjustments) must be resolved on a timely basis. Consignment and pallet level queries can be carried forward up to a maximum 5 days from the delivery date. Any Members who carry forward queries will be regularly reviewed. If Members are found to be raising queries without reasonable explanation, Palletline may, at its reasonable discretion, impose financial penalties for dispute resolution services. Any queries which have not been agreed within 5 days from the delivery date they were raised may be adjudicated by Palletline if escalated and invoices will be raised. Palletline s adjudication will be final and determinative. The fundamental underlying principle is that all manifest, consignment and claims checks are carried out diligently and on a timely basis so that adjustments on Contrado are agreed BEFORE invoices are issued. The member subject to an adjustment has 5 days from delivery to dispute it. If this is not done within this time frame the adjustment will be auto accepted. 4

5 Claims in Progress Goods in Transit claims are to be agreed on Contrado in accordance with the Palletline Charter Chapter 6, before an invoice can be raised. All components of the claim should be agreed to. Once a claim is agreed, the claim should be ready for invoice and both parties agree (the same way that they do for a consignment) that these are included under a Claims Invoice ie receivable or payable Invoices Raising Agency Invoices Invoices will be raised for key transaction types. The criteria for Agency invoicing in respect of manifested inter-depot consignments, are, for any given manifest date range: Proof of delivery (epod/pod status or closure status so defined by Palletline) No unresolved dimension checks discrepancies/service Failures No unresolved financial adjustments The criteria for invoicing in respect of Hub Fees are that, for any given manifest date range, Hub Fees are chargeable to the Requesting Depot based on manifest information. Day Hub Fee rates will be applied based on Hub tipping lane scanning. The criteria for invoicing in respect of Goods in Transit claims are based on timely agreement of claims, subject to Palletline Charter provisions. Other charges are raised as appropriate. All charges are applied in accordance with the Palletline Charter provisions. Invoices and related back-up reports are sent to member accounts departments every Monday for the Friday prior. Invoicing Frequency The basic Agency invoicing period is weekly with an additional split invoicing run to facilitate calendar month ends. Members will be able to generate un-invoiced revenue and cost reports (at a detailed and summary level) together with relevant notes to indicate why the consignments have not yet been invoiced. Invoice Format The Agency invoice format will meet with HM Revenue & Customs requirements (Electronic Invoices - as defined in VAT Notice 700/63 issued by HM Revenue & Customs) and will summarise collection/delivery revenues and costs. Detailed consignment information, supporting each invoice will be available on line to print/export. It is the responsibility of each Member to provide their current recipient address. 5

6 Where the Agency invoice format shows Collection/Delivery Revenues earned by the Member, the Member must account for Output VAT in their own company records. Where the Agency invoice format shows Collection/Delivery Costs or other costs arising as in respect of consignments manifested by the Member as Requesting Depot, the Member must account for Input VAT in their own company records. Monthly Statements Members will have access to their account on Contrado, detailing collection and delivery revenues due to a Member and collection and delivery costs payable by a Member as invoiced in that month and the net contra amount to be included in the due settlement payment process. These statements will be available to all Members within a minimum of 10 Business Days prior to the scheduled Direct Debit collection date and scheduled BACS payment date. A separate statement will be issued for sundry Palletline charges. 6

7 Payment Administration Payments Due For the avoidance of doubt, a billing and payments schedule will be issued each calendar year showing the amended settlement dates where the 30 th and 15 th fall on a Saturday, Sunday or Bank Holiday. Palletline Centre Hub Fees The cleared funds settlement date for Hub Fees is the last working day of the month following the month in which the consignments were manifested. Inter-Depot transactions and other Palletline Centre charges - the cleared funds settlement date for net input charges (inter-depot sales and purchases) is the 15 th day of the month, one month following the month of trading eg the cleared funds settlement date for net input charges in January is March 15th. Where the 15 th falls on a Saturday, Sunday or Bank Holiday, settlement (cleared funds) must be received by the subsequent nearest Business Day. For example, if the 15 th falls on a Saturday, settlement (cleared funds) must be received by Monday 17 th. For example, if the 15 th falls on a Bank Holiday Monday, settlement (cleared funds) must be received by Tuesday 16 th. Cleared funds refers to those monies that have been received and are available for the recipient to withdraw. A remittance advice note can be accessed on Contrado. Payment Default It is responsibility of each Member to ensure that there are sufficient cleared funds available to satisfy the sums owed by that Member on the due date for payment. Failure to pay other system Members or Palletline in accordance with the Charter and/or dishonouring any direct debit due under the Charter for whatever reason is deemed to be a material breach of the Membership Agreement and Palletline may terminate the Membership Agreement in accordance with its terms. At its discretion, Palletline may suspend from Palletline Systems any Member whose direct debit mandate is not honoured or whose bank transfer is recalled by the bank for such duration as the Board may determine pending investigation. Palletline may withhold any payments that may be owed to a Member who is leaving the Network until all monies owed by that Member have been settled and reserves the right to set off such sums against outstanding monies owed by that Member. 7

8 Section 2 Rates Descriptions Rates Tables The following rates are listed in the commercial section of the charter Section Tables Description Quarter, Half and Full Inter Member Rates 3-6 Discount Zones for Postcodes covered by Regional Hub providers (Excl. Scottish hub) 7-8 Highlands & Islands, Ireland and Offshore Rates 9-10 Ex Scottish Hub Inter Member Rates 4 Hub Rates 5 Supplementary Charges (Surcharges) Wasted Collection & Redelivery Charges 6 Palletline Charges Network Compliance & Service Failure Fines Section 3 Inter Member Rates Tables 1-2 Pricing is per consignment based on the total number of pallet spaces within each consignment. Quarter and Half Pallet Rates may not be economical for mixed or multiple pallet consignments depending on the number of pallets, zone and service selected. No multiple pallets discounts apply to quarter or half pallet rates, any consignment in excess of 1 pallet space is to be calculated pro rata based on the rate first pallet space price, unless otherwise agreed in writing between Members The onus is on the Requesting Member to manifest the most commercially advantageous combination of Quarter, Half and Full pallets. Pricing is then calculated on mixed consignments as follows: Number of Quarter Pallets x Quarter Pallet Rate Number of Half Pallets x Half Pallet Rate Total Full Pallet Spaces x prevailing Inter Member rate 1

9 Tables 3-6 Rates are ex Central, Northern, Southern, Leicestershire, Warwickshire and Swindon hubs. Discount zones for specific postcodes via Northern, Southern, Leicestershire, Warwickshire are below in tables 3 6. Tables 7-8 Palletline Highlands & Islands & Offshore rate cards are subject to review on a quarterly basis, due to potential sub-contractor and ferry cost increases. Consignments for delivery to these postcode areas should be manifested as Premium and the fastest transit time will be calculated as per the Appendix 10 Service Standards Saturday, Sunday & Bank Holiday service not available as standard within these areas. All Saturday, Sunday or Bank Holiday deliveries to be agreed with the Delivering Depot. Applies to All Applicable Hubs No Multiple pallets discounts apply, any consignment in excess of 1 pallet space is to be calculated pro rata based on the base pallet space rate, unless otherwise agreed, in writing, between Members. Tables 9-10 For delivery territory not included in the above rates table Northern Hub Inter Member Rates will apply Consignments for delivery within postcode zones G6 G11 should be manifested as premium and the fastest transit time will be calculated as per Appendix 10 Saturday, Sunday & Bank Holiday service is not available as standard within Zones G5 G11 and need to be agreed between members. Any member participating in the Scottish Hub where their delivery territory is not included in the above table will default to Northern Hub rates. 2

10 Section 4 Hub Rates Hub fees are calculated on a per lift basis, not per pallet space. Hub fees are invoiced weekly for all delivered consignments. Economy freight input on stand trailers will be charged at the prevailing day sortation rate. Variable Hub Fee Discounts apply as per details in the Hub Fees. Night sortation applies to all trunks arriving at the Hub between 20:00 and 05:59 hours. Day sortation applies to all trunks arriving at the Hub between 06:00 and 19:59 hours. Hub fees are charged to Requesting member. However, where the Collection member (in a third party or reverse collection consignments) has failed to follow the Charter rules in respect of managing third party or reverse collection consignments; the hub fee may be chargeable to the Collection member via financial adjustments. Hub fees will be applicable to non-deleted consignments (which include those that are manifested but not sent and/or do not have any live/any scans against those pallets/consignments). The default hub fee will be based upon the manifested pallet quantity. Section 5 Additional Inter Member Charging Supplementary Charges (Surcharges) Charges for Saturday or Sunday service are calculated when the consignment is manifested with the correct service code D or G respectively. There is no applicable surcharge code. Where a surcharge code is applicable it must be selected when the job is manifested on Contrado. Surcharges must be indicated correctly to ensure the required service level is met. Only non chargeable, additional information should be entered into the first line of the Manifest Notes field. Timed surcharges are mutually exclusive and cannot be manifested together on the same consignment e.g. BD and PT surcharges, or both BD and BK surcharges. For example a time range of 09:30 hours to 11:30 hours must be manifested and charged as a PT surcharge only, whereas a time range of 10:00 hours to 11:00 hours must be manifested and charged as a BD surcharge and a time range of 11:30 hours to 14:30 must be manifested as a BW. 3

11 Section 6 Palletline Charges & Fines Network and Compliance Fines Network and Compliance fines will be applied at the discretion of Palletline Ltd. Where the fine relates to an operational issue such as late trunks or hazardous freight input this will be at the discretion of the Hub Operational Management Team. Where the fine relates to DSC, MPOD or POD compliance checks, this will be at the discretion of the Hub Network Service Quality Team. All fines will be communicated via when applicable. Service Failure Fine Rules Only applicable upon escalation of a Service Failure within the Service Failure System. Palletline Network Service Quality team will review the circumstances and impact of each individual service failure sent for hub arbitration. They have the authority to award financial penalties for each type of failure. The amount of penalty will vary depending on circumstances and consignment size with maximum penalties outlined. The financial penalty will be awarded against the failing Depot (Collecting or Delivery Depot) for credit to the Requesting Depot. 4

12 Section 3 Inter Member Rates 1. Pallet Rates Premium Effective 3 rd July 2017* POSTCODES B, CV, DE, DY, GL(1-7, 10, 18-20, 50-56), LE, MK(4-6, 8-16, 18-19, 46, 77), NG(1-17,80,90 ), NN, OX(2-3, 5, 7, 15-18, 20, 25-29), ST, TF(10-11), WR, WS, WV, AL, BA(1-2, 13-15), BB(1-6,8-12,18,94), BD(1-22), BL, BS(1-11, 13-16, 20, 30-32, 34-37, 41), CB(1-6, 22-24), CH, CW, DN, GL(8-9, 11-17), HD, HP(1-6, 11-23, 27), HR(1-2, 4, 6-9), HX,L, LL(11-14), LN, LS, LU, M, MK(1-3, 7, 17, 40-45), NG(18-25, 31-34), OL, OX(1, 4, 6, 8-14, 33, 39, 44, 49), PE(1-16, 19-29, 34, 38), PR(5-8, 11, 25-26), RG(1-2, 4-10, 12, 14, 17-31, 40-42, 45), S, SG, SK, SN, SP(9-11), SY(1-8, 12-14), TF(1-9, 12-13), WA, WF, WN, BA(3-12, 16), BS(12, 21-29, 39-40, 48-49, 99), CB(7-11, 21,25), CF(3, 14, 23-24), EN, FY, GU(9-12, 14-20, 34-35, 46-47, 51-52), HP(7-10), HU, IP(26-28, 98), NP(4, 10-13, 15-16, 18-20, 25-26, 44), PE(30-33, 35-37), PR(1-4, 9), RG(3, 11, 13, 15-16), SL(6-8), SO(14-24, 30, 32, 50-53), SP(1-8), WD, YO(1-6, 8, 10, 19, 23-24, 26, 30-32, 41-43, 90-91, 95) BB7, BD(23-24), CF(5, 10-11, 15, 38, 46-48, 64, 81-83), CM1+, CO(1-11), DH(1, 3-6, 97,99), DL(17), GU(1,-8, 13, 21-24, 26-33), HG, HR(3,5), IG, IP(6-8, 14, 22-25, 29-33), LA(1-4), NE(1-4, 6-12, 25-38, 82, 98-99), NP(7-8, 22-24), NR(1-6, 8-11, 16-27), PO(1-22),RM, SL(0-5, 9), SO(1-5, 12, 31, 40-45), SR, TS, YO(7, 11-18, 21-22, 25,51, 60-62) Qtr Half PREMIUM - PRICE PER CONSIGNMENT - TOTAL FULL PALLET SPACES

13 BA(20-22), BH(1-18, 21-25, 31), CF(31-37, 39-45, 61-63, 71-72), CM-0, CO(12-16), DH(2, 7, 9), DL(1-7, 9-10, 14-16), DT(9-11), HA, IP(1-5, 9-13, 15-21), ME(1-2, 4-8, 14-16, 18-20), NE(5, 13, 15-18, 20-24, 39-45, 62-64), NR(7, 12-15, 28-35), RH, SA(1, 5-13), SS, TA(5-15), TN(1-4, 7-16), UB(1-11, 18) BH(19-20), BN(4-8, 11-18, 27, 41-45, 88, 99), BR, CR, CT(1-6), DA, DH8, DL(8, 11-13), DT(1-8), GU25, KT, LA(5+), ME(3, 9-13, 17), NE(19, 46-49, 61, 65-71), SM, TA(1-4, 16-24), TN(5-6, 17-27, 30, 32), TW BN(1-3, 9-10, 20-26), CT(7-21), E(4-5, 7-11, 15, 17-18, 20), EX(5, 9-16, 24, 31-32, 34-36), N(2-22), NW(2-11), TN(28-29, 31, 33-40), W(3-5, 7, 9-13), CA, E1W, E(1-3, 6, 12-14, 16), EC, EX(1-4, 6-8, 17-23, 33, 37-39),LD, LL(15-32), N1, NW1, PL(1-12, 15-21,32-35), SE, SW, TQ, W(1, 2, 6, 8, 14), WC, DG(1-3, 10-14, 16), EH(1-22, 24-30, 47-49, 51-55, 99), FK(1-7, 10), G(1-15, 20-23, 31-34, 40-46, 51-53, 58, 60-62,64-79, 81), KY(2-5, 11-12, 99), LL(33-34, 51, 54-78), ML(1-7), PA(1-8), PL(13-14, 22-31), SA(2-4, 14-20, 31-32), SY(9-11, 15-17, 21-22) DD(1-4, 6), DG(4-9), EH(23, 31-46), FK(8-9, 11-17), G(63, 82-84), KA(1-26, 29-30), KY(1, 6-10, 13-16), LL(35-49, 52-53), ML(8-12), PA(9-19), PH(1-5, 7, 13-14), SA(33-48, 61-73), SY(18-20, 23-25) TD, TR(1-16) DD(5,7-11), FK(18-21), PH(6, 8-12), TR(17-20, (Scilly Isles), 26-27, 93) AB(10-16, 21-25, 30-32, 39, 41-42, 51)

14 2. Pallet Rates Economy Effective 3 rd July 2017 * Qtr Half ECONOMY - PRICE PER CONSIGNMENT - TOTAL FULL PALLET SPACES POSTCODES B, CV, DE, DY, GL(1-7, 10, 18-20, 50-56), LE, MK(4-6, 8-16, 18-19, 46, 77), NG(1-17,80,90 ), NN, OX(2-3, 5, 7, 15-18, 20, 25-29), ST, TF(10-11), WR, WS, WV 3 AL, BA(1-2, 13-15), BB(1-6,8-12,18,94), BD(1-22), BL, BS(1-11, 13-16, 20, 30-32, 34-37, 41), CB(1-6, 22-24), CH, CW, DN, GL(8-9, 11-17), HD, HP(1-6, 11-23, 27), HR(1-2, 4, 6-9), HX,L, LL(11-14), LN, LS, LU, M, MK(1-3, 7, 17, 40-45), NG(18-25, 31-34), OL, OX(1, 4, 6, 8-14, 33, 39, 44, 49), PE(1-16, 19-29, 34, 38), PR(5-8, 11, 25-26), RG(1-2, 4-10, 12, 14, 17-31, 40-42, 45), S, SG, SK, SN, SP(9-11), SY(1-8, 12-14), TF(1-9, 12-13), WA, WF, WN, 4 BA(3-12, 16), BS(12, 21-29, 39-40, 48-49, 99), CB(7-11, 21,25), CF(3, 14, 23-24), EN, FY, GU(9-12, 14-20, 34-35, 46-47, 51-52), HP(7-10), HU, IP(26-28, 98), NP(4, 10-13, 15-16, 18-20, 25-26, 44), PE( , 35-37), PR(1-4, 9), RG(3, 11, 13, 15-16), SL(6-8), SO(14-24, 30, 32, 50-53), SP(1-8), WD, YO(1-6, 8, 10, 19, 23-24, 26, 30-32, 41-43, 90-91, 95) 5 BB7, BD(23-24), CF(5, 10-11, 15, 38, 46-48, 64, 81-83), CM1+, CO(1-11), DH(1, 3-6, 97,99), DL(17), GU(1,-8, 13, 21-24, 26-33), HG, HR(3,5), IG, IP(6-8, 14, 22-25, 29-33), LA(1-4), NE(1-4, 6-12, 25-38, 82, 98-99), NP(7-8, 22-24), NR(1-6, 8-11, 16-27), PO(1-22),RM, SL(0-5, 9), SO(1-5, 12, 31, 40-45), SR, TS, YO(7, 11-18, 21-22, 25,51, 60-62)

15 6 7 8 BA(20-22), BH(1-18, 21-25, 31), CF(31-37, 39-45, 61-63, 71-72), CM-0, CO(12-16), DH(2, 7, 9), DL(1-7, 9-10, 14-16), DT(9-11), HA, IP(1-5, 9-13, 15-21), ME(1-2, 4-8, 14-16, 18-20), NE(5, 13, 15-18, 20-24, 39-45, 62-64), NR(7, 12-15, 28-35), RH, SA(1, 5-13), SS, TA(5-15), TN(1-4, 7-16), UB(1-11, 18) BH(19-20), BN(4-8, 11-18, 27, 41-45, 88, 99), BR, CR, CT(1-6), DA, DH8, DL(8, 11-13), DT(1-8), GU25, KT, LA(5+), ME(3, 9-13, 17), NE(19, 46-49, 61, 65-71), SM, TA(1-4, 16-24), TN(5-6, 17-27, 30, 32), TW BN(1-3, 9-10, 20-26), CT(7-21), E(4-5, 7-11, 15, 17-18, 20), EX(5, 9-16, 24, 31-32, 34-36), N(2-22), NW(2-11), TN(28-29, 31, 33-40), W(3-5, 7, 9-13), CA, E1W, E(1-3, 6, 12-14, 16), EC, EX(1-4, 6-8, 17-23, 33, 37-39),LD, LL(15-32), N1, NW1, PL(1-12, 15-21,32-35), SE, SW, TQ, W(1, 2, 6, 8, 14), WC, DG(1-3, 10-14, 16), EH(1-22, 24-30, 47-49, 51-55, 99), FK(1-7, 10), G(1-15, 20-23, 31-34, 40-46, 51-53, 58, 60-62,64-79, 81), KY(2-5, 11-12, 99), LL(33-34, 51, 54-78), ML(1-7), PA(1-8), PL(13-14, 22-31), SA(2-4, 14-20, 31-32), SY(9-11, 15-17, 21-22) DD(1-4, 6), DG(4-9), EH(23, 31-46), FK(8-9, 11-17), G(63, 82-84), KA(1-26, 29-30), KY(1, 6-10, 13-16), LL(35-49, 52-53), ML(8-12), PA(9-19), PH(1-5, 7, 13-14), SA(33-48, 61-73), SY(18-20, 23-25) TD, TR(1-16) DD(5,7-11), FK(18-21), PH(6, 8-12), TR(17-20, (Scilly Isles), 26-27, 93) AB(10-16, 21-25, 30-32, 39, 41-42, 51)

16 3. Ex Northern Hub Inter Member Rates - Discount Levels Depots Discount Full Discount Half Discount Qtr NZ1 P Ex Northern Hub Inter Member Pallet Rates - Next Day Qtr Half PREMIUM - PRICE PER CONSIGNMENT - TOTAL FULL PALLET SPACES North NZ1 Chub Z3 Postcodes M (1-21, 24-25, 27, 30, 32, 34-35, 40, 43, 50, 60) Ex Northern Hub Inter Member Pallet Rates - Economy Chub Qtr Half ECONOMY - PRICE PER CONSIGNMENT - TOTAL FULL PALLET SPACES Postcodes NZ1 Z3 M (1-21, 24-25, 27, 30, 32, 34-35, 40, 43, 50, 60)

17 4. Ex Southern Hub Inter Member Rates - Discount Levels Depots Discount Full Discount Half Discount Qtr SZ1 P Ex Southern Hub Inter Member Pallet Rates - Next Day Chub Qtr Half PREMIUM - PRICE PER CONSIGNMENT - TOTAL FULL PALLET SPACES Postcodes SZ1 Z6 UB (1-7,11 & 18) SZ1 Z7 TW (1-5, 7-10) SZ1 Z8 N (4-5, 15-16), NW10, W (3-5, 7, 9-13) SZ1 Z9 E (1-2), E1W, EC, N1, NW1, SW (1, 3, 5-8, 10-11, 13-15, 18), W (1, 2, 6, 8, 14), WC Ex Southern Hub Inter Member Pallet Rates - Economy Qtr Half ECONOMY - PRICE PER CONSIGNMENT - TOTAL FULL PALLET SPACES Chub Postcodes SZ1 Z6 UB (1-7,11 & 18) SZ1 SZ1 SZ1 Z7 TW (1-5, 7-10) Z8 Z9 N (4-5, 15-16), NW10, W (3-5, 7, 9-13) E (1-2), E1W, EC, N1, NW1, SW (1, 3, 5-8, 10-11, 13-15, 18), W (1, 2, 6, 8, 14), WC

18 5. Ex Warwickshire Hub Inter Member Rates - Discount Levels Depots Discount Full Discount Half Discount Qtr WZ1 P Ex Warwickshire Hub Inter Member Pallet Rates - Next Day WZ1 Chub Z2 Qtr Half PREMIUM - PRICE PER CONSIGNMENT - TOTAL FULL PALLET SPACES Postcodes B (40, 49-50, 80, 90-95), CV (1-12, 21-23, 31-35, 37, 47), NN (6, 11-13) Ex Warwickshire Hub Inter Member Pallet Rates - Economy WZ1 Chub Z2 Qtr Half ECONOMY - PRICE PER CONSIGNMENT - TOTAL FULL PALLET SPACES Postcodes B (40, 49-50, 80, 90-95), CV (1-12, 21-23, 31-35, 37, 47), NN (6, 11-13)

19 6. Ex Leicestershire Hub Inter Member Rates - Discount Levels Depots Discount Full Discount Half Discount Qtr LZ1 P Ex Leicestershire Hub Inter Member Pallet Rates - Next Day Chub Qtr Half PREMIUM - PRICE PER CONSIGNMENT - TOTAL FULL PALLET SPACES Postcodes LZ1 Z2 LE (15, 87, 95), NN Ex Leicestershire Hub Inter Member Pallet Rates - Economy Chub Qtr Half ECONOMY - PRICE PER CONSIGNMENT - TOTAL FULL PALLET SPACES Postcodes LZ1 Z2 LE (15, 87, 95), NN

20 7. Highlands/ Islands & Ireland HIGHLANDS & ISLANDS Qtr Half PRICE PER CONSIGNMENT - TOTAL STANDARD PALLET SPACES POSTCODES AB(20, 33-38, 43-45, 52-56), IV(1-20, 25,28, ,3 6, 63), PH(15-26) KW(1-3, 5-14), PA(21-38), PH(30-41,49-50) IV(21-24, 26-27, 40, 52-54) IV40 (Unless, Isle of Rassay - POA) HS(1-9), IV(41-49, 51, 55-56), KA(27-28), KW(15-17), PA(20, 41-49, 60-78, 80), PH(42-44), ZE(1-3) NORTHERN & SOUTHERN IRELAND Qtr Half PRICE PER CONSIGNMENT - TOTAL STANDARD PALLET SPACES POSTCODES Dublin City, County Dublin and County Kildare REPUBLIC OF IRELAND Cavan, Carlow, Clare, Cork, Donegal, Galway, Kerry, Kilkenny, Laois, Leitrim, Limerick, Longford, Mayo, Meath, Offaly, Roscommon, Sligo, Tipperary, Waterford, Westmeath, Wexford, Wicklow BELFAST BT Republic of Ireland Counties Louth & Monaghan REST OF NORTHERN IRELAND BT

21 8. Isle of Man & Channel Islands Inter Member Rates IOM Qtr Half Full 23 ISLE OF MAN - IM CHANNEL ISLANDS Qtr Half Full 24 JERSEY JE(1-5) & GUERNSEY GY(1-8) PLUS PER CONSIGNMENT CUSTOMS CHARGE FOR IMPORTS EX CHANNEL ISLANDS TO MAINLAND DESTINATIONS 25 ISLE OF WIGHT PO(30-41) ALDERNEY GY9 & SARK GY10 POA POA POA 26 HERM ISLAND (HERM) POA POA POA 10

22 9. Standard Ex Glasgow Hub Inter Member Rates Premium Qtr Half PREMIUM - PRICE PER CONSIGNMENT - TOTAL FULL PALLET SPACES POSTCODES G1 FK1, G(34, 42, 44-45, 58, 67, 69, 71-76, 79-80), ML G2 EH, FK2+, G(1-33, 35-41, 43, 46-57, 59-66, 68, 70, 77-78, 81-84) KA (1-4,10-17,20-25,29-30), KY(1-7, 11-13, 99), PA(1-19), PH(1-9) G3 DD, DG, KA(5-9, 18-19, 26), KY(8-10, 14-16), PH(10-14), TD G4 CA G5 AB, IV(1-20, 25, 28, 30-32, 36, 63), PH(15-26) G6 BT G7 KW(1-3, 5-14), PA(21-38, 60), PH(30-41) G8 Rest of Northern Ireland BT G9 IV(21-24, 26-27, 40, 52-54), PH49-50 IV40 (Unless, Isle of Rassay POA) G10 No postcode territories in this zone G11 HS(1-9), IV(41-49, 51,55-56) KA(27-28), KW(15-17), PA(20, 41-49,61-78, 80), PH(42-44), ZE(1-3)

23 10. Standard Ex Glasgow Inter Member Rates Economy Qtr Half ECONOMY - PRICE PER CONSIGNMENT - TOTAL FULL PALLET SPACES POSTCODES G1 FK1, G(34, 42, 44-45, 58, 67, 69, 71-76, 79-80), ML G2 EH, FK2+, G(1-33, 35-41, 43, 46-57, 59-66, 68, 70, 77-78, 81-84), KA(1-4, 10-17, 20-25, 29-30), KY(1-7, 11-13, 99), PA( ), PH(1-9) G3 DD, DG, KA(5-9, 18-19,26), KY(8-10,14-16), PH(10-14), TD G4 CA G5 AB, IV(1-20, 25, 28, 30-32, 36, 63) G6 No postcode territories in this zone G7 KW(1-3)

24 Section 4 Hub Fees Hub Fee Per Pallet Charge Based on total number of Pallet Lifts per consignment: Per Pallet Lift Central (Day) 3.44 Central (Night) 5.08 Leicestershire 2.87 Northern 3.20 Scottish Hub 3.20 Southern 3.85 Warwick 2.87 Swindon 3.20 Manifested, not sent and not deleted (default rate) 4.95 All hub fees are charged on manifested pallets (the above rates include a 5 pence supplement for Network Development recovery costs which is subject to review) Notes Night sortation applies to all trunks arriving at the Hub between 20:00 and 05:59 hours. Day sortation applies to all trunks arriving at the Hub between 06:00 and 19:59 hours. Hub fees are charged to Requesting member as a general rule except where the Collection member (in a third party or reverse collection consignments) has failed to follow the Charter rules in respect of managing third party or reverse collection consignments; the hub fee will be chargeable to the Collection member. Hub fees will be applicable to non-deleted consignments (which include those that are manifested but not sent and/or do not have any live/any scans against those pallets/consignments). The default hub fee will be based upon the manifested pallet quantity. 1

25 Section 5 Additional Inter Member Charges Supplementary Charges Per Consignment Relating to Time or Delivery Day Surcharge Description Explanation Charges VU Very Urgent Specific Timed delivery between 09:00 09:59 hours PT Premium Timed - Pre Delivery window between 09:00 10:00am (not time specific) :00 delivery BD Specific Time Delivery Delivery required for a specific time or within a time range of 2 hours or less. The 8.00 BD surcharge applies from 10:00 hours until 16:00 hours. AM AM Delivery Delivery required before 12:00 hours CA AM Collection Collection required before 12:00 hours. Details to be clearly specified on the 4.00 consignment manifest notes as an AM collection and manifested one working day prior. BK Booking in by Delivery Contacting delivery point to agree a convenient delivery time window of more 2.50 Depot on B&C service consignments only than 2 hours between 10:00 hours and 16:00 hours. Any requirement specified by the Customer during the booking call for a specific time, or less than a 2-hour time window to be agreed with Requesting Member and any additional surcharge revenue adjusted as appropriate. i.e. A booked delivery for a specific time of 14:00hrs is requested, 8:00 adjustment. AF Post 16:00 delivery Delivery or specific timed delivery required post 16:00 hours. If the specified time or any part of a time range of 2 hours or less begins at or after 16:00 hours the AF surcharge will apply. BW Booked Window Any booked window equal to or more than 3 hours required between 10:00 hours FOC Saturday Delivery Service D and 16:00 Hours. Saturday delivery on service D

26 Sunday Service G, Bank & Public Holiday Service H Delivery on a Sunday, bank or public holiday Supplementary Charges Per Consignment Relating to Additional Services Surcharge Description Explanation Charges LA Lift Assist Delivery Tail lift delivery for pallets between Kgs requiring assisted pallet truck 2.50 LC Lift Assist Collection Tail lift collection for pallets between Kgs requiring assisted pallet truck 2.50 Supplementary Charges Per Pallet Relating to Additional Services PU Pallet Unload / Handball Removal of cartons (each <25kg) at delivery point, after unloading the pallet from the delivery vehicle, and transfer to ground floor premises entry. First pallet is handled free of charge. PW Palletisation Collection of items for delivery which are not palletised. (Goods must be packaged and require palletisation and wrap). The Collecting Depot must palletise and wrap, ensuring that the wrapped pallet is suitable for transit through the Network. Collecting depots will either supply the pallet at the collection point or palletise upon return to the Depot. Service is not available on consignments in excess of 3 pallets without prior arrangement with the Collecting Depot per pallet after the first pallet per pallet to include supply of pallet SL Slaving Bricks Slaving Bricks on to a Pallet per pallet Storage - Held Pallet held in storage pending re-delivery or further instructions from Requesting Depot in excess of 96 hours from manifested delivery date. Storage - Inbound Delivery depot or Hub may charge storage on any consignments held which have been input into the system more than 24 hours in advance of manifested service level per pallet space per week or part thereof 5.00 per pallet space per week or part thereof 2

27 Waiting Time Additional waiting time incurred in excess of 30 minutes subject to a minimum charge of per 30 minutes or part thereof Parking Fines Parking Fines incurred as per Section 3 and agreed with Requesting Depot As agreed ETA Day of Delivery Call with estimated time of arrival on the day of delivery Free SV Small Vehicle 7.5 Tonne vehicle FOC LQ Limited Quantity Information Only. Must be identified on the Pallet as per restricted goods FOC instructions TL Tail-lift Tail-lift delivery required FOC CM CMR Insurance CMR Insurance applies FOC 3

28 Wasted Collection Charges Wasted Collection journey charges are charged at the rate below per consignment unless the collection postcode is listed below: Per Consignment 15 This charge will be handled by the system upon correct application of Collection Management. See Section 3 Best Practice Depot. Redelivery Charges Rates chargeable per pallet space at the rate below: Per pallet space 15 Unless the postcode is listed below as an increased rate as listed in Appendix 15. In instances where the redelivery revenue exceeds the consignments original delivery revenue then the lesser of the two revenue figures can be applied. 4

29 Section 6 Palletline Charges & Fines Palletline Charges (These may be suspended at the discretion of the Board of Palletline Ltd and communicated to the Members in writing) Network Development Levy Meeting fees Stationery replenishment charges Promotional item charges Courier charges Marketing fee - Per Depot per week per Member per week Per Member, irrespective of attendance; additional charges per delegate Per item available via website Per item available via website Cost of courier as per Ex-Hub Courier Control process 30 (currently suspended) 1

30 Network Compliance Fines Compliance Area Exclusions/Notes Fine Applicable Late or Un-notified Trunks Applied to all pallets on any consignment on late trunk to hub that cannot provide proof of agreed departure time from depot. A per pallet credit is given from collecting 0.30 per pallet Hazardous Freight Non-DSC Compensation Mis-declaration of DSC status or signature Mis-declaration of MPOD status or time Mis-declaration of POD upload image depot to hub and delivery depot. Applicable to any unauthorised input of hazardous freight received at any Palletline Hub. Delivery charges include costs of onward ADR qualified delivery arranged. Applied automatically on Contrado from the Delivering depot to the Requesting Depot Hub identified and applied fine. Network Services to provide 2 written warnings of this occurrence prior to application of this fine. Once warnings have been sent, the fine can be applied to all further jobs that are found to have this issue. The credit will be raised from delivery to requesting depot. Hub identified and applied fine. Network Services to provide2 written warnings of this occurrence prior to application of this fine. Once warnings have been sent, the fine can be applied to all further jobs that are found to have this issue. The credit will be raised from delivery to requesting depot. Where a blank or incorrect document is uploaded as a proof of delivery. Applicable when Customer Own Paperwork is manifested and uploaded within agreed time restrictions. Network Services to provide 2 written warnings of this occurring prior to application of this fine. Once warnings have been sent, the fine can be applied to all further jobs that are found to have this issue. The credit will be raised from delivery to requesting depot per pallet plus delivery charges 1.00 per consignment 50 per consignment 50 per consignment 50 per consignment 2

31 Service Failure Fines Failure Maximum Financial Penalty VU, PT, BD, BK, BW Manifested Surcharge Consignments Specific time failure up to one hour late. Surcharge amount + fine of 10. Specific time failure over one hour late but on the Surcharge amount + delivery manifested delivery day. revenue + fine of 10. Specific time failure not on the manifested delivery day. Surcharge amount + delivery revenue + fine of 25. AM Manifested Surcharge Consignments Delivery failure up to one hour late (before 13:00 hours). Surcharge amount + fine of 5. Over one hour late but on correct day. Surcharge amount + delivery revenue + fine of 5. AM delivery not delivered on the manifested delivery Surcharge amount + delivery day revenue + fine of 25. PM Manifested Surcharge Consignments Delivery failure up to one hour late (before 18:00 hours Surcharge amount + fine of 5. where the delivery point is open to accept the delivery). PM delivery not delivered on the manifested delivery Surcharge amount + delivery day. revenue + fine of 25. Premium Consignment Delivery failure on manifested delivery day. Delivery revenue + 25 fine. Delivery failure on working day following manifested Delivery revenue + 50 fine. delivery day. Delivery failure on subsequent days. As above + an extra 50 per working day until delivery is completed Economy (48 / 72 hour) Consignment Delivery failure on manifested delivery day. Delivery revenue + 25 fine. Delivery failure on working day following manifested Delivery revenue + 50 fine. delivery day. Delivery failure on subsequent days. As above + an extra 50 per working day until delivery is completed All Collections Collections not made on specified date. Fine of 25. Failure to Communicate Delivery or Collecting depot failed to communicate via accepted method to the Requesting Depot prior to failure. Applicable in addition to all categories above. 25 fine. 3