Currency Adjustment Factor

Often when you engage in container shipping, you may get the feeling the freight carriers are ‘nickel and diming’ you. There are accessorial charges and surcharges that may pop up on your invoice at anytime. Some of these extra charges might seem a bit excessive, but sometimes there are charges that although might upset international shippers, are with good reason. One of these charges is the Currency Adjustment Factor. Essentially, ocean carriers will add this accessorial shipping fee to cover their losses from foreign exchange rate fees. After all, most banks will charge this fee for foreign currency exchanges, and nations in shipping usually have different currency.

Currency Adjustment Factor, or CAF, exists for these foreign currency reasons. This charge has been around for many years in shipping. It should be noted that every ocean freight carrier will have a different rate for this charge. It is usually a percentage of the freight rate that is added onto the international shipping quote that you receive. And the Currency Adjustment Factor is changing sometimes since it is based on the rising or falling of the US dollar.

One way for shippers to avoid dealing with the Currency Adjustment Factor is to pay an all-inclusive deal that would cover additional charges like this one. However, sometimes this still might not be the best solution. Working with a freight forwarder who has your best interest might be the most efficient way to ensure that you receive the best price possible for shipping.