FREIGHT PRICING & CURRENCY TERMS
Currency adjustment factor (CAF)
A currency adjustment factor is a freight-pricing adjustment associated with currency exposure under a tariff or agreement. Its rate, calculation basis and effective dates must be specified.
CURRENCY ADJUSTMENT FACTOR IN PRACTICE
- Identify the applicationCheck the lane, currency and effective dates.
- Confirm the basisEstablish which charge components it adjusts.
- Reconcile the totalKeep CAF separate from other adjustments.
Use the agreed units, actual records and approved procedures for your operation.
A WORKED EXAMPLE
5% of an assumed $2,000 base = $100.
If a hypothetical agreement applies a 5% CAF only to a $2,000 base freight amount, the adjustment is $100. Other charges are outside that stated calculation. This invented example is not a current tariff, exchange rate or promise that a provider uses that basis.
WHAT THIS MEANS FOR YOUR QUOTE
Agree the requirement before comparing quotes
Use the actual shipment, stock and service requirements. Record the billing unit, included work and responsibility for exceptions.
A LITTLE MORE CONTEXT
Questions about Currency adjustment factor
Is CAF the same for every carrier?
No. The actual tariff or agreement governs.
Is it always applied to the whole invoice?
No. Confirm the stated calculation basis.
Does a CAF percentage establish the exchange rate?
No. A surcharge and currency conversion are different calculations.
Source & example notes
Definition and operational example prepared by 3PL Hub. Examples describe hypothetical requirements; verify the actual records and agreed procedures for your operation.
Quantities, costs and scenarios are illustrative, not operating targets, approved handling instructions or guarantees. Source guidance reviewed 22 October 2026.
Last updated: · 3PL Hub
