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What is Triangular Shipment ?

Is triangular business a real thing, and who are the parties involved? And how do foreign exchange payments work in triangular business? Let’s explain how triangular trade functions. Know more about triangular shipment with import export course online. When a transaction involves 3 countries, there are 3 parties involved. This is known as a triangle shipment. To make this easier to understand, let me give you an example of triangular shipment. Your company is located in Mumbai, India. You have received an order for goods from a buyer in Yang Min, China (ABC). According to the terms of your agreement with your buyer, the goods must be shipped to a party in New York (XYZ), USA. ABC obtains the purchase order from the final buyer and the goods are procured by you in India. You should ship the goods to XYZ at the port of New York after ABC receives the order from the final buyer. Triangle shipments are also known as foreign-to-foreign shipments or triangle trades. In a Triangle shipment, there are two Bills of Lading. The first one identifies both the original consignee and the true supplier. This second Bill of Lading is prepared for the goods to travel from the source (supplier) to the 3rd party, showing the original consignee as the supplier and the 3rd party as the consignee. The above information is a part of Digital Exim Online Training Course.