Pricing & Surcharges
CAF (Currency Adjustment Factor)
A surcharge that adjusts ocean freight rates for exchange-rate movements between the currency a rate is quoted in and the carrier's operating currencies.
In depth
CAF protects carriers from currency risk on rates quoted in a currency other than the one in which they incur costs. Rates are commonly quoted in US dollars while crew, port, and bunker costs arise in many currencies, so a moving exchange rate erodes the real value of a fixed quote. CAF is usually expressed as a percentage of the base freight and revised periodically by trade lane. Like BAF it is often excluded from headline quotes, so confirm whether it is inside an all-in figure before comparing carriers.
Key points
- Adjusts freight rates for exchange-rate movements
- Usually a percentage of base freight, revised by trade lane
- Distinct from BAF, which covers fuel rather than currency
- Frequently excluded from headline quotes — confirm before comparing