CROSS TRADE SHIPMENT

Trade shipment specially useful for trader or intermediary who buy and sell their goods without sharing with origin supplier who is their actual buyer or vice versa the source of supply. this will allow the intermediary to inflate the cost for goods as profit. 

 

With the inception of IT changed the way we conduct our business and the UCP 500 of the banking convention allows the switching of shipping documents that facilitate ease of business transactions with a seamless approached. This evolution of changed contributed to the way business is conducted and in the most cost effective and yet efficient ways. 

 

Traditionally, the physical goods are brought into the intermediary country to get the shipping document switched in their name before it is shipped to buyer country at a profit.  
Due to the transparent and competitive market situation. Cost remains an essential component of shipping direct under one component cost hence allows the intermediary to stay competitive.