4 October 2022
Cross Trade Shipments
When we talk about freight forwarding and international transportation, we most often assume that we are talking about the regular export or import of goods. In these cases, on one side of the logistics chain we have our customer, operating in Poland, and on the other, his customers or suppliers, whose warehouses are located abroad. However, this does not exhaust all the possibilities. After all, it is possible to transport on behalf of a customer based in the European Union between two other countries belonging to the EU, or even between countries outside the EU.
Cross Trade Shipments – possible variations
The international shipments can be divided into the following categories:
Three-party operations within the EU
All three parties: the manufacturer, the consignee and the transport organizer are based within the European Union, although in different countries.
Mixed non-EU operations
The manufacturer or supplier of the goods is located outside the European Union, while the transport organizer and consignee are located in the EU.
Pure non-EU operations
Neither the manufacturer (supplier) nor the consignee of the goods is located in the European Union, while the transport organizer is registered in a member country.
Each of the aforementioned scenarios has advantages and disadvantages, and generates costs that can turn out to be significantly lower when compared with other options. The magic of logistics lies, among other things, in the fact that a good operator can plan routes and delivery schedules so that goods are moved as quickly and cheaply as possible. Moreover, if transportation is part of the supply chain and its repetitive nature determines the continuity of the production process, the operator will effectively identify solutions with minimal risk.
At Smart Cargo Solutions, we know that constant market monitoring enables us to plan ahead. We can warn customers of potential obstacles and suggest in advance a modification of the route or a change of means of transportation. This will either be a one-time solution or a recommendation for a longer period of time, until obstacles subside or new circumstances arise.
Cross Trade Shipments – case study
But back to the title Cross Trade Shipments… What, in a nutshell, is this type of freight forwarding? Well, it consists in the organization of transportation in such a way that neither the manufacturer of the goods nor the consignee is based in the country in which the company ordering the transport is registered.
Now let’s imagine a hypothetical company selling goods manufactured abroad. Such a company might buy the product in question, import it, and then sell and export it to the country of final destination. It will achieve its goal much more easily (and cheaply) if it bypasses the two intermediate steps of import and re-export. Instead, the entrepreneur can ship the goods directly from the manufacturer’s warehouse to the customer, which will significantly shorten the supply chain, speed up transportation and reduce operating costs. It will also simplify customs and tax formalities.
The obvious benefits of tailoring the model to our client’s business situation can be achieved thanks to our excellent knowledge of the market and the laws applicable not only in Poland and the EU, but also beyond its borders. The number of possible combinations is so large that optimization of transportation requires efficient cooperation between many entities located in different parts of the world. Each of them is a specialist in their own area. Only the sum of experts’ knowledge creates the added value we offer to our customers.
World Cargo Alliance – the array of possibilities
Smart Cargo Solutions is a member of the World Cargo Alliance (WCAworld), the world’s largest freight forwarding network. WCAworld, an international organization of logistics operators from around the globe, consists of more than 10,950 offices located in 193 countries. WCA membership and in-depth knowledge of the specifics of such services makes it possible for us to offer our customers transport shipments between any destination in the world, in addition to facilitating the selection of agents whose competence and capabilities will best suit the needs of our customers.
Acting together, we rely on mutual trust – as a result, we can instantly establish contact, recognize the current situation in the indicated area of the world and find the best and safest solution and carriers to realize it. Whether by road, sea, air or a combination of all these options. We use synergy to increase our potential and the profit of our customers.