Triangle Shipping

Triangle Shipping 

1. General information of triangle shipping:

➤ A Triangle shipment, also known as Triangle trade, Triangular Shipment, Triangular Trade, or Foreign-to-Foreign shipment, involves three countries and three parties in a transaction.

➤ Specifically, as a company or individual from a third country, a foreign-to-foreign shipment occurs when goods are transported from one country to another without passing through your own country.

2. Benefits of triangle shipping:

➤ The advantages of a third-country company or distributor providing such a service include reducing supply chain expenses, shortening the time goods take to travel from origin to destination, and streamlining the supply chain by dealing with a single entity – in this case, Ai Logistics, the China-based freight forwarder / logistics provider. Foreign-to-Foreign / Triangular Shipments encompass various scenarios.

• Example 1: Consider a scenario where an exporter/shipper/supplier (manufacturer/producer) is located in China, a seller is based in the U.S., and the consignee/end user/distributor (final buyer) is situated in Colombia.

• Example 2: Consider a new business shipping from China to the U.K. (while being U.K. based) and selling to a distributor or through Ai Logistics commerce platforms like Amazon, eBay, or Etsy. If they later find a customer in the U.S., they need a freight forwarder/logistics company experienced in protecting their interests and offering comprehensive logistics solutions. This includes securing the necessary foreign entity customs bond for potential DDP service for U.S.-bound shipments. When shipping to other countries, the freight forwarder/logistics provider should comprehend the import regulations in the third country, particularly when offering door delivery services like DAP/DDP.

➤ To prevent the consignee from trying to directly engage with the exporter, the seller, who contracted the exporter in China, aims to keep the identity of the manufacturer/producer (exporter) confidential. The seller collaborates with a forwarder, appointed by them, to manage freight forwarding and logistics services from origin to destination, all without revealing the seller’s identity on any shipping documents.

• Example: A similar situation could involve a foreign company opting to ship goods from one country to another while bypassing its home country. For instance, a Greek company deciding to ship from Brazil to Spain.

3. Detailed information of document switching:

➤ Document Switching – "Switch" Bill of Lading / "Switch" Air Waybill. To safeguard your sources (e.g., suppliers), it’s essential to collaborate with a freight forwarder or logistics company experienced in such transactions and equipped with a global network of partners capable of providing comprehensive door-to-door logistics services, if required.

Set 1 Documents

• For ocean shipments, a "Switch" Bill of Lading, also known as a "Blind" Bill of Lading (referred to here as Set 1 documents), should be generated by the forwarder and provided to the supplier during the export process for their customs requirements. This document will not contain the actual buyer’s information.

• In the case of air shipments, a "Switch" Air Waybill or "Blind" Air Waybill would be issued to the supplier. Notably, original documents like the Commercial Invoice (CI), Packing List (PL), and additional documents like the Certificate of Origin (COO) or Health Certificate will not be sent to the buyer, as they include the supplier’s details.

Set 2 Documents

• The second set of Bill of Ladings or Air Waybills will feature your details as the "seller" and your buyer’s information as the "buyer." This approach facilitates customs clearance and delivery for your buyer. Even if you offer door delivery services, such as DAP/DDU or DDP, it’s wise to follow this process to safeguard your supplier’s anonymity. Ai Logistics, with its comprehensive experience throughout the shipment’s journey, ensures your interests are protected at all stages of the transaction.

• At this juncture, Ai Logistics, the freight forwarder in this context, will request you, the seller, to provide a CI, PL, and any extra documents like a COO or Health Certificate that indicate you as the "seller" and your buyer as the "buyer," complete with your selling price on the CI. Ai Logistics is well-equipped to guide you through the entire procedure and provide additional consultation when required.

➤ Caution: The validity of a Switch Bill of Lading varies for different shipments. Confirm with your freight forwarder whether your cargo insurance covers a switch bill of lading or air waybill and if it is recognized as a legitimate shipping method for export/import/bank/insurance purposes. Also, ensure the cargo details on both sets of documents match exactly. Importantly, only one set of documents can be issued, never two. The second set of documents must be issued only after the first set has been collected, either by you as the seller from the supplier or by your freight forwarder on your behalf.

For a swift price quote, please complete the provided form. For detailed information about Triangle shipping services, please reach out to us at china@ai-log.com. We’ll respond promptly.