Let's face it - it's the shipping equivalent of a love triangle.
Cross trade shipping (also known as triangle shipping) can be a tricky process and can incur additional time and money if it's not done right.
Put simply, a cross trade shipment is when you ship from one country outside of Australia to another country outside of Australia. Given the controlling party is based in Australia, there are 3 countries involved in the transaction (origin, destination and Australia); hence the term 'triangle shipment'.
If you're a regular importer or exporter, you'll know shipping into Australia has its hurdles, right? Well, how about shipping from China and delivering DDP into the USA?
Cross trade has become a very popular process, as Australian companies continue to push into the global market space. The USA is a particularly good example of this, where US buyers are increasingly requesting DDP terms to eliminate their exposure to the security implications and the associated costs with importing.
If you are shipping into the US, have you considered these questions?
Do you have an LOA in place?
Do you understand the implications of having a continuous bond?
Are you registered as foreign importer of record?
If you are shipping into Europe:
Do you have an EORI in place?
If you are shipping into the Middle East:
Are you aware of the documentation requirements?
Do you know who can be deemed as the 'supplier'?
Do you have terms in place with your providers to cater for the prolonged clearance process in certain ports?
Additionally, in a lot of cross trade instances, customers like to protect their supplier information. Ask us how we manage this.
We have extensive experience in helping companies to manage cross trade shipments. Like so many aspects of international shipping, importing and exporting is an area where you need knowledge on your side.
Give us a call and we can give you the plain-English version of how we can better manage this shipping love triangle for your business.