A Logistical Success Story
How meeting letter of credit requirements solved problems for a new client and resulted in a successful project

The Situation:
A major local vendor in California contracted to supply a buyer in Japan with all the furniture, artwork, carpeting, etc., needed for the club house of a newly built golf course. Volume was about 20 40' containers. But things got complicated because approximately 40 separate vendors were involved. Coordination, payment transactions and communications all would require deft handling. The LA Nippon Express USA office provided two major services for this new client that simplified what threatened to become a logistics nightmare.

The Solution:
While other forwarders recommended using an ocean bill of lading as the instrument for the shipping document against the letter of credit, Nippon Express USA had a better idea. We suggested using the forwarder's cargo receipt which would be issued when delivery was confirmed at a Nippon Express warehouse in Japan. This meant the exporter could pay their vendors quickly, thus gaining buying power. Nippon Express worked with the advising bank to clarify details of the arrangement, an extra step that helped ensure cooperation. As for operations, Nippon Express advised customer and consignee on proper shipping procedures and thus expedited orders and customs clearance in Japan. Thanks to our forward-thinking Nippon Express agents, a complex project was handled smoothly.