Could you provide a brief explanation of a transfer of a Documentary Credit (LC)

Question:
Could you provide a brief explanation of a transfer of a Documentary Credit (LC)?


Answer:
A final buyer (the applicant) applies at his bank for an LC to be issued in favour
of a intermediary trader (the 1st beneficiary) - who in turn requests his bank to transfer the LC to the trader’s supplier (the 2nd beneficiary).
The goods are shipped directly to the Applicant by the 2nd Beneficiary and will never come into the physical possession of the intermediary trader, the 1st beneficiary.