Crossing Borders: What to Know About Foreign-to-Foreign Shipping?

Crossing Borders: What to Know About Foreign-to-Foreign Shipping?

International trade has greatly revolutionized in the past few years and one example of this is foreign-to-foreign shipping, also known as a triangular shipment or triangular trade. A foreign-to-foreign shipment is a transaction that involves three parties from three different countries. In many cases, there is a wholesaler who has an order from a buyer and the wholesaler wants to ship those goods directly from their supplier to the buyer. 

In other words, if there is a wholesaler who is located in the United States and has a supplier in France and a customer in Italy. Instead of shipping the products from France to the United States and then to Italy, the wholesaler can reduce costs and transit time by shipping directly from their supplier in France to the buyer in Italy. 

These shipments can be tricky as the wholesaler does not want to reveal their supplier’s identity to the buyer as the buyer can potentially go directly to the supplier and cut out the wholesaler. 

With this in mind, it is of great importance that you find an experienced international freight shipping company for your foreign-to-foreign shipments. 

What are the positives of foreign-to-foreign shipping?


Reduction in Transportation Time, Lower Supply Chain Costs and Greater Efficiency 

The first benefit you will experience if you utilize foreign-to-foreign shipping is the reduction in transportation time as your product will be shipped directly from the supplier to the buyer. These shipments also do not need to spend unnecessary time going through the customs clearance process in the United States and can go directly through the destination country’s customs process. 

With that being said, shipping directly from the supplier to the customer in triangular shipping, it can reduce your supply chain costs and can eliminate customs clearance charges in the U.S. 

Finally, triangular trade helps make your supply chain more efficient as there is only a single point of contact, which is the overseas freight forwarding service provider

Tips For Your Foreign-to-Foreign Shipments

  1. The first thing you must focus on is choosing a highly reputable and trustworthy freight forwarder. They should be completely familiar with the triangular shipment process and know how to complete it efficiently. An efficient freight forwarder will have the right information about the buyer and supplier's details and be aware of the purchase and selling prices. They will also ensure to keep the identity of the supplier from the buyer. 
  2. Have your international shipping provider explain the switch bill of lading process to you to help ensure they have the providers to manage your shipment effectively. 
  3. When you are switching the B/L, make sure that you are detail-oriented and provide the exact details. Whenever you make any amendments to the B/L, it may cost around $50 to $100. If you make any mistakes in the document, there can also be penalties. So, you should work with an international freight forwarding service provider with the right experience and can assist you with every little detail during the process.

When you rely on these tips, you can help ensure that there will be a successful execution of your triangular shipment. If you are seeking help with a foreign-to-foreign shipment, you should contact us at Diversified Transportation Services. We have a team of highly efficient and hard-working professionals who can help you with the process. 

Connect with us for more details!

What Can DTS Do For You?

Whether you're a company looking to improve one facet of your supply chain, your entire supply chain, or simply looking for a transportation and logistics consultation, we can help.

Get In Touch
Copyright © 2022 – 2024 , Diversified Transportation Services. All Rights Reserved
magnifiercrosschevron-down