Triangular shipment

What Is a Triangular Shipment?

A foreign-to-foreign shipment also known as F2F shipment, triangular shipment or triangular trading is a transaction involving three parties in three different countries. One of the parties, usually a wholesaler, takes an order from a buyer in a particular country and procures the goods from a supplier located in a different country and arranges to ship the goods directly from the supplier to the buyer without the consignment passing through the country where the wholesaler is situated.

What are the Advantages of F2F Shipments?

Though it may sound risky, the advantages of foreign-to-foreign shipments are many:

Shorter Transportation Time
Customs clearance is a cumbersome process. Triangular shipping helps to avoid this delay. This is especially important for those companies dealing with perishables and other price volatile commodities.

Lower Supply Chain Cost
Foreign-to-foreign shipping reduces supply chain cost by saving on the freight rates and eliminating clearance charges

Supply Chain Efficiency
In triangle shipping, the complete logistics from the port of loading to the final port of discharge is handled by a single point of contact, i.e., your freight forwarder, hence optimizing the supply chain efficiency.