Category: Charges & surcharges
Currency Adjustment Factor (CAF)
Also known as: CAF
Definition
A surcharge that adjusts freight for exchange-rate fluctuations between the billing and base currencies.
The Currency Adjustment Factor protects carriers against losses when freight is collected in a currency that moves against the carrier’s base currency, usually the US dollar. It is expressed as a percentage applied to the freight and revised as exchange rates shift.
CAF is the currency counterpart to the fuel-driven BAF. On stable lanes it may be small or folded into the base rate, but on volatile currency pairs it can be a meaningful line item that forwarders flag to customers.
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