What is a blind shipment?
A blind shipment is a type of freight shipment in which the shipper and receiver are unaware of one another's identity. This method is often used in third-party logistics to protect the intermediary's privacy or prevent direct communication between the original seller and the ultimate buyer. Blind shipments are standard in industries where distributors or drop shippers act as middlemen and prefer to keep their supplier’s information confidential.
How is a blind shipment arranged?
A blind shipment is arranged by altering the bill of lading and other shipping documents to ensure that neither the consignee nor the consignor can identify each other. This typically involves the third-party logistics provider or the freight forwarder managing the communication and documentation to maintain anonymity throughout the shipping process. It requires meticulous attention to detail in the documentation to avoid unintentionally revealing any party’s identity.
Why are blind shipments used?
Blind shipments maintain business confidentiality and prevent suppliers and buyers from bypassing wholesalers or intermediaries. They help preserve business relationships by ensuring that buyers remain dependent on the intermediary for future purchases rather than contacting the supplier directly. Additionally, blind shipments can enhance businesses' competitive edge by safeguarding trade secrets and supplier information.
