Cross Trade Shipping is not a new concept, but often confused with cross trading in terms of forex trading. Cross trade shipping is also referred to as triangle shipments, or even foreign-to-foreign or third-party shipments. The process of trading whereby the three parties, that is the seller, the supplier and the buyer, are situated in three countries, thus the triangle reference.
Cross trade shipping has been getting more traction with businesses in Australia due to the convenience doing business in overseas market without the hassle of needing to import the products into Australia and then exporting them to the destination country and final delivery. This allows for faster supply chain as you opt out of needing to do the additional two steps of bringing the cargo goods into Australia and sending them out, and directly shipping from origin to destination.
There are many reasons why someone would opt for this kind of business and often which, its because of the potential cost savings and improved operational efficiencies that cross trade shipping provides.
- New Market Access
- Reduced Supply Chain Costs
- Reduced Transit Times
- Supply Chain Efficiencies
- Use of Local Forwarders
When organizing cross trade shipping it is important to ensure smooth process flow. Often utilizing a reputed freight forwarder such as Transco Cargo can help in mediating between the two parties, that is the manufacturer and the buyer. You should definitely state that you if wish your cross-trade shipping to be neutral, which means, you do not wish to let your manufacture and buyer parties know of each other. This will ensure that the manufacturer or buyer will directly contact each other, forgoing you as the middleman.
Also, having marine insurance is also a good business strategy and also working with us, your freight forwarder, to choose the best incoterms for your shipment. Researching on the free trade agreements between the other countries can also be beneficial. Getting the help of a freight forwarding agent can help you navigate international shipping processes, especially the different rules and regulations that needs to handled carefully. Choosing a reliable freight forwarding agent is a great asset in your corner for a successful business operation.