What categories does entrepot trade fall into? Come and have a look!

From the perspective of transportation, there is another classification of entrepot trade. When some goods are transshipped, they will directly change ships for transshipment at the transit point, which is quite common in seaborne entrepot trade. For example, goods from Japan to Brazil will change ships at the South Korean port and then continue to be shipped to Brazil, which can optimize the transportation route and cost.

According to the trading entities, there is entrepot trade dominated by professional entrepot traders. They specialize in entrepot business and are familiar with markets and trade rules in various places. There is also entrepot trade carried out by manufacturing enterprises themselves. For example, some large manufacturing enterprises use their own advantages to sell products to specific markets through entrepot trade.

From the perspective of trade settlement, there is entrepot trade of receiving payment after collection, that is, the entrepot trader first receives the payment from the downstream buyer and then pays the upstream seller; and there is also entrepot trade of paying before collection, that is, the entrepot trader first pays the payment to the upstream, and then collects the payment after the goods are resold, which requires a higher capital strength of the entrepot trader.

In entrepot trade, according to whether there is the participation of a third country in document processing, it is divided into entrepot trade with the intervention of a third country in document processing and entrepot trade without the intervention of a third country in document processing. The former involves the operation of trade documents by a third country, such as changing the information on the bill of lading; the latter is that the trading parties handle the documents by themselves.

Divided by the nature of the transshipped goods, there is entrepot trade of ordinary commodities, such as the transshipment of common daily necessities and electronic products; and there is also entrepot trade of special commodities, such as the transshipment of some controlled chemicals, products of endangered species, etc. This kind of entrepot trade often needs to meet more special regulations.

From the perspective of the purpose of entrepot trade, there is entrepot trade to avoid trade barriers, for example, there are high tariffs between some countries, and the goods avoid high tariffs through transshipment; there is also entrepot trade carried out due to geographical advantages, like some countries in the position of traffic hubs, using the convenience of geographical location for transshipment.

According to the form of trade contracts, entrepot trade is divided into fixed contract entrepot trade, that is, the trading parties sign long-term fixed entrepot trade contracts; and there is also temporary contract entrepot trade, signing single contracts according to the specific business needs each time.

From the degree of association with production, it can be divided into pure trade-type entrepot, that is, simply buying and selling goods; and production and trade combined-type entrepot, such as transshipping the goods after certain production and processing in the transit place.

According to the currencies involved, entrepot trade is divided into single-currency entrepot, where the whole trade process is settled in only one currency; and there is also multi-currency entrepot, using different currencies in different links to cope with situations such as exchange rate fluctuations.