A freight quote is a price in one currency built from costs in several, and the customer pays it weeks after you fixed it. Any exchange-rate movement in that gap lands on somebody. If your quote says nothing about it, it lands on you. This guide is for forwarders who quote international freight, and shippers will find it useful for reading why a quote is worded the way it is. It explains where the exposure arises, what carriers themselves do about it, and the quote clauses and habits that keep a currency move from eating your margin. It is general information, not financial advice.
Where currency exposure actually arises
Currency risk in forwarding is rarely one big bet. It is several small mismatches stacked along the life of a shipment.
- Buy currency versus sell currency. Ocean and air carrier rates are commonly quoted in US dollars, while your customer wants a price in their own currency, or you invoice in yours. The moment those differ, you hold a position.
- Local charges in a third currency. Terminal handling, documentation and delivery-order fees at origin or destination are usually set in the local currency of that port. A shipment from Port Klang to Rotterdam can touch US dollars, Malaysian ringgit and euros before it is invoiced.
- Duties, taxes and disbursements. If you pay customs duty or VAT on the customer's behalf, that outlay is in the importing country's currency and is usually settled before you are repaid.
- Time. The exposure is the length of the gap between the day you fix the price and the day the customer's payment reaches you. A quote valid for 14 days, a transit of 30 days and 30-day payment terms is a long time to leave a rate unattended.
Note the direction: you are exposed when your costs are in a currency that strengthens against the currency you are paid in. The same movement can also help you. The point of managing it is not to win, but to stop it deciding whether a job made money. The margin side of that is covered in how to price a freight quote: margin, overhead and what competitors charge; this article is only about the currency layer on top.
What carriers do about it
Carriers face the same problem and write it into their terms, which is a useful template for how to word your own.
The traditional tool is the currency adjustment factor (CAF), a surcharge or percentage adjustment applied when exchange rates move against the currency the carrier's costs are in. Our guide to BAF, CAF, PSS and every fee on your invoice explains how it appears on a bill of lading. Whether a given carrier still applies a CAF on a given trade changes over time and by trade lane, so check the carrier's current tariff notice instead of assuming.
Some carriers instead handle currency in their general terms. As of September 2026, Maersk's general terms and conditions (clause 40, "FX Rates", version amended 21 July 2026) say that Maersk will convert currency "at the prevailing conversion rate at the applicable date for the service provided under the invoice". The same clause says Maersk may, in its discretion, apply a conversion adjustment calculated as a percentage of the converted sum, with the percentages set out in a published markups table by currency pair. It also states that conversion rates derive from benchmark rates provided by third-party suppliers, and that the customer waives any right to contest those benchmark rates. You can read the current wording at terms.maersk.com/GTC.
Read that clause as a checklist. It names four things: which date the rate applies to (the invoice's service date), which rate (a benchmark from a named kind of source), what extra may be added (a published percentage), and who can argue with it (nobody). A forwarder's own currency clause can be built from the same four parts, ideally with a fairer answer to the last one.
Carrier pages also change often. Where this matters to a specific shipment, confirm the local-charge currency and any adjustment in the carrier's current tariff or your booking confirmation rather than relying on a summary, including this one.
Quote in which currency: cost currency or the buyer's?
This is the central choice, and neither answer is free.
| Approach | Who carries the currency risk | Works best when | Watch out for |
|---|---|---|---|
| Quote in the cost currency (for example USD) | The customer, from quote to payment | Your buy rates are USD and the customer can pay or convert USD easily | Customers comparing against quotes in their own currency; some can't pay USD without friction |
| Quote in the customer's currency | You, until you buy and are paid | The customer needs certainty for a budget or a landed-cost calculation | You are short the cost currency for the whole validity window |
| Split: freight in cost currency, local charges in local currency | Shared, and each side matches its natural currency | Multi-leg quotes with charges in several countries | A longer, more complex quote that a buyer must add up themselves |
| Customer's currency plus an FX clause | Shared, within limits you set | You want a stable-looking price but need protection from a large move | The clause must be written clearly or it reads as a hidden surcharge |
A useful rule: the party who can hedge or absorb the exposure most cheaply should carry it, and the quote should be honest about who that is. A forwarder with steady USD costs and steady USD receipts has little net exposure in quoting USD. A forwarder who buys in dollars and sells only in a weaker or volatile local currency is the one who most needs the tools below.
Quote validity is a currency hedge
The cheapest protection you have is a short validity window. Every extra day a quote stays open is a day you are effectively offering the customer a free option: if the currency moves in your favour they may still accept, and if it moves against you they would accept and you absorb it. Tie validity to how quickly you can fix your own costs. If the carrier rate you built the quote on expires in 7 days, a 30-day customer validity means you are carrying the difference. Our guide to freight quote validity and rate expiry covers how to set that window, and the same thinking applies to the currency you priced it in.
Some forwarders go further and state a shorter validity for quotes in a currency other than the cost currency. That is a legitimate, transparent position provided it is written on the quote.
Add an FX buffer or a currency clause
There are two ways to write the protection into the quote, and they work differently.
The buffer
A buffer is a small margin added to the converted price to absorb ordinary movement. It is simple and invisible to the customer, but it is a guess. Set it too low and it does nothing; set it too high and you lose competitive quotes to a forwarder who priced tighter. Base it on how long your exposure lasts and how volatile that currency pair has actually been in your own recent invoices, not on a round number. There is no universal correct percentage, and any figure you see quoted as an industry norm should be treated as unsupported unless it names a source.
The clause
A currency clause states that the price is converted at the rate on a defined date. It is more transparent than a buffer and it protects you against large moves. A workable structure has five parts:
- The price currency and the currencies of any pass-through charges. Say which lines are fixed in which currency.
- The conversion date. For example, "converted at the rate of exchange on the invoice date".
- The rate source. Name one, and name it exactly.
- The rounding. State how many decimals and whether you round the converted line or the invoice total.
- Any threshold. Some forwarders keep the quoted rate fixed unless the movement passes a stated percentage, which gives the customer certainty against small swings.
Example wording: "Charges shown in USD will be invoiced in EUR at the euro foreign exchange reference rate published for the invoice date, rounded to two decimal places on each invoice line." Adapt it to your terms with your own adviser; the shape matters more than the exact words.
Which rate source to name, and why name one at all
Naming a source removes the argument. Without it, a customer who sees a converted figure can fairly ask which rate you used, and you have no answer that does not sound like you chose the one that suited you. Carriers do the same: the Maersk clause above points to third-party benchmark rates rather than the carrier's own view.
Common choices are a central bank rate, the European Central Bank's euro reference rates, or a commercial data provider. Each has trade-offs:
- Central bank rates are public, dated and easy for a customer to check. Confirm the bank publishes a rate for the pair you need.
- ECB euro reference rates are widely known and free. As of September 2026 the ECB says they are usually updated at around 16:00 CET every working day, except on TARGET closing days, and are based on a daily concertation procedure between central banks that normally takes place around 14:10 CET. The ECB also says plainly that the reference rates are "published for information purposes only" and that using them for transaction purposes is "strongly discouraged". That is worth knowing before you write one into a contract: it does not make the rate unusable as an agreed billing benchmark, but it means the rate is not a price at which you can actually trade, so your real conversion may differ from it. Source: ECB euro foreign exchange reference rates.
- Commercial providers such as Bloomberg or a bank's own rate sheet can be closer to the rate you actually receive, but the customer usually cannot check them for free, which weakens the point of naming a source.
Whatever you pick, name the publisher, the rate, and the fixing time or date convention, and use the same source consistently. Change it only in your terms, not case by case.
Collect in the invoiced currency
A tidy currency clause can still be undone at payment. If you invoice in EUR but the customer pays in USD and their bank converts, you receive a different amount than you invoiced, and the shortfall is yours to chase. Set the rule in your terms: the invoice currency is the currency of payment, the customer bears any conversion and bank charges on their side, and short payments caused by conversion are due in full. Where you need the funds in the cost currency anyway, ask for payment in that currency and avoid converting twice.
The same applies to duties and taxes you advance. Record the local-currency amount on the invoice alongside the converted figure, so a reviewer can trace it. If a customer disputes the converted figure, the local-currency amount and your named rate source are what you will both look at, which is why a clean record matters for the dispute process covered in our guide to credit control and getting paid.
When to talk to a bank about hedging
Most forwarders can get through with short validity, a clear clause and collecting in the invoiced currency. A bank conversation becomes worth having when the numbers are large or predictable enough to justify it. These are general concepts only, and the right structure depends on your business, so take advice from your bank or an adviser.
- A forward contract lets you agree today the rate for exchanging a set amount on a future date. It fits when you have a known future payment in a foreign currency, such as an annual contract quoted in the customer's currency, where you will know the amounts well ahead. It fixes the rate, which also means you give up the benefit if the market moves your way.
- A multi-currency account lets you hold and pay in the currencies you deal in, so a USD receipt can pay a USD carrier bill without converting twice. It reduces conversion cost and timing gaps more than it removes market risk.
- Natural matching needs no product at all: if you earn and spend in the same currency, you have already hedged that part.
Ask any provider about the fees, the minimum amounts and what happens if the shipment is cancelled, because a forward you no longer need can be costly to unwind. None of this is a reason to trade currency for its own sake; the goal is a predictable margin on freight.
A short checklist before you send the next quote
- List the currency of every cost line and the currency you are quoting in.
- Decide who carries the exposure between quote and invoice, and say so on the quote.
- Keep the validity no longer than you can fix your own costs. See how freight rates are calculated for which lines usually move.
- Add a buffer or a clause, and if a clause, name the rate source, date and rounding.
- State the currency of payment and who bears bank conversion.
- Review your actual exposure each quarter against your invoices, and talk to a bank only if it is large enough to matter.
Finding forwarders and comparing quotes on CargoLinked
When you compare forwarder quotes, check the currency they are stated in and what the validity date says, since a price in your own currency and a price in USD are not directly comparable until you convert both on the same basis. You can browse forwarders by country, city and trade lane in the CargoLinked directory, where listings are self-published, so check the credentials of any company you work with. Shippers can also post a shipment on the requests board, where eligible forwarders quote and each quote carries a validity date after which it expires.
This article explains a commercial practice in general terms and is not financial, tax or legal advice. Carrier terms and the ECB's publication details were read as of September 2026 and can change; confirm the current wording with the carrier or the ECB before relying on it.
