globalizacion

Cross Trade

Globalisation of markets has promoted a growing trend towards integrated product supply between suppliers and their customers in international commercial operations.

This means that exporting companies have increased their acquisition of complementary components and articles in a variety of markets — in countries other than those of their production centres — which must all arrive at the customer’s location at the same time in a coordinated manner.

These products must therefore be managed using triangular or cross trade operations, without undergoing any further production processes and by necessity travelling over different routes. They must be delivered to the final customer along with the main product being exported, as if only a single shipment was involved.

BETTER SERVICE WITH LOWER COSTS AND TIMES

When these triangular or cross trade operations are carried out, the Spanish company is responsible for contracting cross trade shipping to transport the goods, from the warehouse of each secondary supplier (probably located in different countries) to the customer’s warehouse in the destination country.

Since the complementary goods never need to enter into Spain, this procedure presents advantages in terms of reducing shipping costs, avoiding payment of importing duties, and eliminating extra handling costs. In turn, transit times are faster, the overall period required for the commercial operation is reduced, and the resources required are optimised.

However, triangular operations must also be carried out without the final recipient being able to identify the various secondary suppliers that have been involved. This means that only the main supplier company — with which the sales transaction has occurred — can appear on the documentation (sales invoice, bill of lading, packing list, etc.) or on the identifying elements (labels on packages, pallets, etc.).

Cargo Flores knows the ins and outs of this type of shipping and can guarantee the confidentiality of the documents involved when negotiating the bills of lading (B/L), including those issued at the ports of origin and those produced at the destination ports as well.

BETTER SERVICE WITH LOWER COSTS AND TIMES

Through its own extensive, international network of agents, Cargo Flores possesses all of the logistical resources necessary to perform cross-trade shipping in any location in the world, using the most appropriate combination of the various means of transport.

Cargo Flores is an international logistics operator with extensive experience in triangular operations, and our consulting team has a broad range of knowledge of legislation related to customs and taxation. We can also ensure that the most appropriate means of payment or collection are used for each operation.

Our Cross Trade Department performs a cost and risk analysis for each operation, selecting the most appropriate Incoterms 2010 rules to be included in the purchase or sales contract. It can also advise the exporting company regarding the necessary documentation procedures so that commitments can be carried out without delays. Some of the most critical documents include:

  •  Issuance of the maritime bill of lading (B/L) or the air waybill (AWB).
  • Issuance of the reception certificate for ship and air transport.
  • Specific documentation for each type of goods.
  • Conditions that must be taken into account when credit documents are used for purchasing or sales transactions.
  • Documents related to the origin of the goods.