Cross Trade transport is a term used in international trade to refer to the process of shipping goods between two different countries without the direct intervention of the country of origin or final destination. In other words, it involves the transportation of cargo between two different nations, but neither of which is the place of origin or final destination of the goods.
In this article, we will explore in detail the concept of Cross Trade Transport and the reasons why more and more companies are opting for this option in international trade.
Why choose Cross Trade Transport?
Cross Trade transport offers numerous advantages for companies involved in international trade. Here are some of the key reasons to choose this option:
1. Flexibility in the shipping process
Cross Trade transport provides greater flexibility and speed in the process of shipping goods. By bypassing the country of origin or final destination, restrictions and additional paperwork are eliminated. This results in shorter transit times and greater control over shipments.
2. Simplified logistics
Cross Trade transport simplifies the supply chain by eliminating the need for goods to pass through the country of origin. This reduces logistical complexity and speeds up the shipping process. Companies can focus on the essential aspects of transport without being affected by customs procedures and associated red tape.
3. Reduced costs
By bypassing the country of origin, companies can reduce costs related to customs clearance and waiting times. This translates into significant long-term savings and greater efficiency in the management of financial resources.
4. Increased efficiency and faster delivery times
Cross Trade transport eliminates unnecessary steps in the shipping process, leading to greater efficiency. By avoiding the need to divert cargo to the country of origin or final destination, transit times are reduced and the supply chain is optimised. This ensures that products reach their final destination faster and more efficiently.
5. Access to new markets without physical presence
Cross Trade transport allows companies to directly access new markets without the need to establish a physical presence in the country of origin. This represents a great opportunity to expand trade reach and take advantage of international markets without incurring additional costs.
How does Cross Trade Transport work?
The cross trade transport process involves several key stages. Below is an overview of how it works:
Identification of transport providers: The first step is to identify and select transport providers specialised in cross trade transport. These providers must have the expertise and resources to handle Cross Trade shipments efficiently and safely.
- Coordination between the countries involved: Once the transport providers have been selected, close coordination is established between the countries involved in the shipment. This involves communication and collaboration between freight forwarders, freight forwarders and customs agencies in the countries of origin, transit and final destination.
- Documentation and customs formalities: The preparation of the necessary documentation, such as the commercial invoice, bill of lading and customs documents required by the countries of origin and destination, is carried out. These formalities are handled by the transport providers to ensure a smooth and seamless process.
International transport: Once customs formalities are completed, the cargo is transported directly from the country of origin to the country of final destination, without passing through the country of the supplier or buyer. - Transport providers use different modes of transport, such as sea, air or land, depending on the specific needs and requirements of the shipment.
Tracking and control: Throughout the entire transport process, the cargo is continuously tracked and controlled. This includes monitoring transit times, managing possible deviations or delays, and constant communication with the different actors involved in the transport. - Delivery to final destination: Once the cargo arrives in the country of final destination, the corresponding customs clearance process is carried out. The transport providers are responsible for ensuring that the cargo is delivered safely and on time to the final destination designated by the buyer.
Frequently Asked Questions about Cross Trade Transport
