cross trade

With air freight’s rising costs and delays, have you considered cross trade shipping?

As Covid restrictions are eased and, in some cases, removed entirely, businesses are opening once more and we want to discuss something called Cross trade shipping.

The inevitable demand for air freight has caught the industry off guard as the number of available aircraft is not keeping pace with the demand. With space at a premium, customers see rocketing prices and, in some cases, longer transit times.

As businesses try to cut costs, there is a growing demand for cross trade shipping. Let’s look at what that is and what the advantages are for business.

Cross trade shipping

In a nutshell, a cross trade is organised between two countries – neither of which the seller is based.

So, if you’re selling a product to a company in Japan, but your product is made in China. Cross trade shipping involves moving your product directly from China to Japan.

It’s also known as ‘triangle shipment’ because three countries are involved: the country of origin, the destination, and your business in the UK.
Now you know what it is, why should you consider them?

5 reasons to use cross trade shipping

Here are our five top reasons why businesses should use cross trade shipping:

Breaking into new markets

Cross trades are an easy and convenient way to break into new markets without the additional cost of on-selling your product from your location after it’s already been imported.

Lower supply chain costs

The supply chain is one area where many costs can be streamlined. By completely removing the need to bring goods to you, cross trades eliminate freight and duty costs and taxes related to initially importing the product.

Reduced transit time

There’s no point exporting/importing to you if you’re halfway across the world. Shorter transit times mean more significant cost savings for your business.

Efficiency in the supply chain

Back to the supply chain. By exporting A to B rather than A to C to B, cross trades bring production and stock closer to the final destination.

Local forwarder

Forget the headache of trying to find a freight forwarder overseas. Cross trades give you the flexibility of dealing with your local forwarder in your time zone. You maintain one local contact while they deal with the complexities of each country.

Streamline your business and supply chain

As the world gets back on its feet, keeping an eye on costs is essential. Over the past two years, we’ve all taken a hit; budgets are stretched, and consumers are more demanding.

Cross trade shipping gives you more options, faster transit times and lower costs, so it’s well worth looking into if you haven’t already done so.

Smart Directions provide a bespoke logistics service, ensuring their clients maintain excellent levels of customer service at all times. Call the team on 01442 507 240 to find out more.

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