Triangular transport operations

Triangular transport operations

A triangular transport operation occurs when three companies/individuals in different countries are involved and the transport goes directly from the supplier to the end customer.

In this operation, company A purchases the goods from company B, which would be the supplier, but requests that they be sent to company C, which is the end customer. Therefore, the physical transport will be from B to C and the invoices from B to A and then from A to C.

Triangular operations reduce logistics costs, allow you to operate without having your own warehouses, and reduce time.

The purchasing company is usually responsible for contracting the transport, providing all the details to the carrier and establishing the appropriate Incoterms.

The necessary documentation, depending on the type of transport, should be a CMR for land transport (shipper B, consignee C, but A contracts the transport), BL for sea transport (the shipper can be B or A and the consignee C) and  AWBL for air transport (the shipper can be B or A and the consignee C)

There must be a commercial invoice for two sales transactions, from B to A and from A to C. And finally, a packing list issued by supplier B.

Juanjo Marti
Author

Juanjo Marti

ACCOUNTING & IMPORT DEPARTMENT

Responsible for the financial department of WOCI since 2000. Development and financial strategy for the smooth running of the company's economic flow. General accounting, tax settlement, preparation of budgets and presentation of balance sheets. Since 2017, and with aspirations to broaden my knowledge, I have been responsible for the import department.

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