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.
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, by 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 your there is only a single point of contact, which is the overseas freight forwarding service provider.
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.
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