Supplementing your global freight management strategy with letters of credit can be challenging but worthwhile.
Whether shipping an import from China, an auto export to Dubai, or machinery somewhere else internationally, a global management approach using a reliable freight forwarder can be the difference in a successful delivery with minimal twists and turns and, well... everything else. The freight logistics machine is complex, challenging to navigate, and entrenched with restrictions and regulations that must be followed for customs and a variety of other agencies when imports or exports are involved.
Sometimes shipping under a letter of credit is the way to go. For a bank to issue one, they are indicating a validation of their customer (the buyer), which is worth the money when executed correctly. The fees can be paid by the buyer, the seller, or shared between the two. If the selling party successfully prepares the letter of credit correctly & presents it to a bank for negotiation, the funds can be transferred within as few as 10 days of the presentation of all the required documents.
This kind of financial flexibility is actually quite advantageous, and that kind of backing from a bank can open many doors for trading and transportation.