UK business can enter new global markets, reduce their carbon footprint and streamline costs by taking advantage of cross-trade shipments.
Cross-trade is a shipment method which means that goods can be shipped between two countries without having to pass through the country where the importer is based.
David Hooper, founder of Hooper & Co International Trade Consultancy, says that many businesses aren’t aware of cross-trade as viable alternative to traditional shipping routes.
He said: “It is a common misconception amongst UK businesses that they believe that they must import goods into the UK before re-exporting to their end destination.
“Cross-trade cuts out what can be an unnecessary stop in the UK. Not only does it save on time and hassle for businesses, it reduces costs and transit times.
“Businesses now are more environmentally conscious than ever before, and a key benefit of cross-trade is that it offers a lower carbon footprint too.
“Cross-trade is an excellent way for UK-based businesses to facilitate global trade, without needing to incur the costs of importing first. For example, a business could ship goods directly from China to the USA, or Germany to Australia.
“Technological advancements are making the process even easier, with modern logistics software enabling real-time tracking and management of cross-trade shipments.
“It should be viewed as a means and central part of a strategy for businesses based here to enter new markets around the world without having to have a physical presence in any of those countries.”
While it has many benefits, there a number of factors for any business to consider before utilising cross trade.
David says that while businesses can skip the UK, they must still consider factors such as free trade agreements, and the support of a knowledgeable freight forwarder can be invaluable.
“It’s absolutely vital that any business considering cross-trade is aware of the compliance factors and the importance of understanding and adhering to export and import regulations in multiple jurisdictions,” he added.
“You need to follow incoterms, review free trade agreements and be certain you have documentation requirements in place specific to origin and destination countries.
“This is where the value of working with a freight forwarder comes in. By working with an experienced consultant, you can get the benefits of cross-trade without the hassle.
“Consultants can manage paperwork, logistics and fundamentally simplify the whole process. International trade can be a tricky landscape, but with support a business can navigate the complexities of cross-trade and enable the expansion of their business to new markets all over the world.”
For more information about Hooper & Co, which helps businesses navigate global import and export www.hooperandco.com