International trade continues to grow, connecting markets thousands of miles apart. In this context, cross trade, or triangular transport, has become a key solution for many companies.
This type of operation allows a company to manage the sale of goods between two countries without the need for the cargo to pass through its own country, acting as a bridge between supplier and end customer.
With cross trade, companies can reduce costs, streamline deliveries and simplify processes, which is especially valuable in industries where speed and margins are critical.
In this article we explain precisely what Cross Trade is, how this type of operation is managed, what advantages it offers and what requirements must be taken into account.
In addition, we will detail how Across Logistics as a global logistics operator, can accompany companies in the planning and execution of this type of international shipments with guarantees.
What is Cross Trade in international logistics?
Cross Trade, also known as triangular transport or international triangulation, is a logistics operation in which a company coordinates the shipment of goods between two different countries without the cargo physically passing through the country where the company is established.
In practical terms, this is an international sale and purchase involving three players:
1 A vendor or supplier located in a country A.
2 An end-buyer located in country B.
3 An intermediary company located in country C, which manages the transaction but does not physically receive the goods.
The intermediary company buys the goods from the supplier in country A and sells them to the final customer in country B, organizing the transport directly between these two points. Its role is that of commercial and logistical coordinator, without intervening in the storage or transit of the cargo in its country of origin.
This type of operation is completely legal and is contemplated in international trade, although it requires proper document, customs and logistics management to avoid problems of confidentiality, regulatory compliance or delivery delays.
How does Cross Trade work?
A cross trade operation involves coordination between several parties located in different countries. Although it can vary in complexity depending on the type of goods, trade agreements and countries involved, the general outline of the process is as follows:
🔄 Basic outline of a cross trade operation
The intermediary company (country C) receives an order from the final buyer located in country B.
The intermediary purchases the product from a supplier located in country A, negotiating delivery and price conditions.
International transport is contracted directly between country A (origin) and country B (destination), without the goods passing through country C.
The intermediary company manages the transport, logistics documents and, in many cases, also the commercial confidentiality between supplier and customer.
The buyer in country B receives the goods and, depending on the agreement, carries out the import customs formalities.
🧩 Agents involved and coordination
Supplier (country A): Prepares the goods and delivers according to the agreed Incoterms (commonly EXW or FOB).
Intermediary company (country C): Coordinates the entire logistical operation, issues the invoice to the customer and manages the documentation.
Final buyer (country B): Receives the goods, undertakes import clearance (if agreed) and makes payment to the intermediary company.
📌 Keys to the process
Documentary management: It is crucial to issue correctly the transport documents, for example, Bill of Lading o Air Waybill without disclosing sensitive information.
Confidentiality: The intermediary may request the shipping company or freight forwarder to conceal the identity of the supplier, to avoid direct contact between customer and manufacturer.
International coordination: Synchronization between supplier, freight forwarder and end customer is essential to ensure that deadlines are met and no customs errors arise.
Advantages of Cross Trade for companies
Cross Trade offers multiple operational, financial and strategic benefits for companies that act as intermediaries in international trade. These advantages explain why this modality has established itself as an efficient solution in globalized sectors.
🌍 Access to new markets without physical presence
It allows operating in international markets without the need for logistics infrastructure or warehouses in the country of origin or destination.
This is especially useful for trading companies, global distributors or brokers.
💰 Optimization of logistics costs
By eliminating transit through the intermediary’s country, transportation, storage and unnecessary handling costs are reduced.
In addition, duplicate customs charges that could result from importing and re-exporting from the intermediary’s country are avoided.
⏱️ Reduction of transit times
By transporting directly from the supplier to the end customer, the total duration of the shipment is shortened, which improves the delivery time and strengthens the business relationship with the customer.
📦 Increased operational agility
Cross Trade allows you to act quickly in response to market demand, facilitating supply from any origin without geographical limitations or delays due to intermediate re-shipments.
🤝 Strengthening trade competitiveness
By controlling the logistics chain without having to physically touch the goods, intermediary companies can offer more competitive prices and shorter delivery times, generating greater added value compared to their competitors.
Requirements and documentation for cross trade operations
Although cross trade may appear to be a simple logistical operation in physical terms, its proper execution requires detailed planning and precise document management to ensure the legality, traceability and efficiency of the process.
The main requirements and documents involved are detailed below:
📄 Commercial and transport documentation
Commercial Invoice: Issued by the intermediary company to the final buyer. It is essential that it correctly reflects the terms of the operation and the description of the goods.
Bill of lading (B/L), AWB or CMR: Document issued by the shipping line, airline or carrier that evidences the contract of carriage and serves as title to the goods. In Cross Trade operations, a bill of lading without visible consignee or with specific instructions may be required to maintain confidentiality between supplier and end customer.
Packing List: Details the exact content of the goods (units, weight, volume, packaging, etc.). It is key for verification during customs clearance.
Specific certificates (if applicable): Depending on the product and the country of destination, certificates of origin, sanitary, phytosanitary, conformity, etc., may be required.
⚙️ Logistics and customs coordination
Definition of Incoterms: It is essential to clearly establish Incoterms between each party to define logistical and customs responsibilities. In Cross Trade, the following are usually used EXW, FOB, CFR o DAP depending on the commercial strategy.
Customs clearance at destination: The importing company (end buyer) will, in most cases, be responsible for import clearance. However, the intermediary company must ensure that the documentation is correctly issued and accepted by the customs authorities of the destination country.
Shipping Instructions: Key document to define how the bill of lading should be issued, including consignees, notifications and specific confidentiality or routing conditions.
🔐 Commercial confidentiality
One of the most sensitive aspects of cross trade is to avoid direct contact between the supplier and the end customer. To this end, the shipping line or freight forwarder can be asked to issue a bill of lading (B/L) that does not reveal the identity of the supplier, provided that customs regulations allow it.
It is common for the freight forwarder to act as an authorized logistics intermediary to manage the issuance of documents and control the release of the goods under the authorization of the intermediary company.
Sectors where Cross Trade is frequently applied
Cross Trade is especially useful in contexts where supply chains are global, trade margins require logistical efficiency or products have a high international turnover.
Listed below are some of the sectors where this mode of transportation is most common:
🏭 Industry and technical components
Companies that manufacture or market machinery, spare parts, electronic equipment or industrial components use cross trade to supply products directly from the manufacturer to the end customer, optimizing lead times and avoiding unnecessary warehousing in the intermediary’s country.
🧴 Cosmetics and perfumery
In sectors such as cosmetics, where the brand manages global marketing from a central headquarters but produces in third countries, Cross Trade allows direct distribution to the point of sale or local distributor, avoiding logistical duplication.
👕 Fashion and textile
Large groups in the textile sector manage their logistics through triangulation to reduce delivery times to the store and avoid seasonal delays. It is usually applied when the design and sale is made from a country other than the country of manufacture.
📱 Technology and consumer electronics
In sectors with high added value and rapid obsolescence, such as technology, cross trade is key to guarantee fast delivery from the manufacturer to distributors on different continents, without passing through intermediate logistics centers.
🧪 Pharmaceuticals and chemicals
Companies in the pharmaceutical sector o chemical sector use triangular operations to comply with country-specific regulations and maintain traceability, while optimizing their global logistics from highly regulated manufacturing centers.
🧳 Wholesale trade and international brokers
Intermediaries and brokers specialized in international trade, without their own logistics capacity, apply Cross Trade to operate in multiple markets efficiently, acting as a link between producers and buyers without manipulating the merchandise.
How can Across Logistics help you in a Cross Trade operation?
The correct execution of a Cross Trade operation requires precise planning, experience in international coordination and an exhaustive control of the documentation and the actors involved.
At Across Logistics we have the operational capacity, technical knowledge and global network necessary to manage this type of shipments safely, efficiently and adapted to the needs of each client.
🌐 Network of international agents
Thanks to a strong network of logistics agents at origin and destination, Across Logistics can coordinate triangular shipments in virtually any combination of countries, ensuring smooth execution regardless of supplier or end-customer location.
📦 Integrated transport management
We offer complete solutions for sea, air and land transportation, allowing you to choose the most appropriate mode according to the type of cargo, urgency and budget. We take care of planning the shipment directly from the country of origin to the destination country, avoiding unnecessary transits through third countries.
📋 Documentary and customs control
Our specialized documentation and customs teams oversee the entire process: issuance of the bill of lading, shipping instructions, commercial invoicing, packing list, certificates and any specific requirements according to the destination country. In addition, we manage confidentiality instructions to protect our customers’ commercial interests.
🔐 Confidentiality guaranteed
We know that in Cross Trade operations, confidentiality between supplier and final buyer is key. Therefore, we apply specific procedures to ensure that the identity of the parties is not revealed in the transport documents or in the logistic communication, if requested by the intermediary company.
📞 Personalized advice
Each Cross Trade operation has its own particularities. In Across Logistics we assign a specialized logistics manager who advises the client in the definition of the most convenient Incoterm, the documentary strategy, the fiscal implications and the coordination between all the agents involved.
Frequently Asked Questions about Cross Trade
Is it legal to carry out Cross Trade operations?
Yes, Cross Trade is a totally legal practice in international trade, as long as the tax, customs and documentary regulations of the countries involved are complied with. It is essential to have specialized advice to avoid compliance errors that may result in sanctions or blocking of goods.
What Incoterms are commonly used in triangular shipments?
It depends on the structure of the operation, but the most common are EXW, FOB, CFR, CIF and DAP. The key is to clearly define the responsibilities of each party (supplier, intermediary and final buyer) and ensure that the documents are aligned with those terms.
Can I hide the identity of my supplier from the end customer?
Yes, it is a common practice in cross trade. Transport documents can be issued without showing the original supplier, through specific instructions to the freight forwarder or shipping line. At Across Logistics we offer this service under strict confidentiality protocols.
What happens if there are discrepancies between the documents issued by the supplier and those of the intermediary?
It is essential that the documentation is perfectly coordinated. Any difference between the supplier’s data (invoice, packing list) and the documents generated by the intermediary can cause delays at customs or even blockages. This is why it is essential to have a logistics operator that manages and supervises all documents centrally.
Can Cross Trade be applied within the European Union?
Yes, although with certain particularities. In the intra-EU area, where there are no customs controls between EU countries, it is possible to structure triangular operations, but the tax effects of VAT and chain invoicing must be considered. It is recommended to analyze each case with a tax and logistics advisor.
