Currency Adjustment Factor - CAF

Wouldn’t it be awesome to decide how much the money in your pocket is worth? Instead of buying a candy bar for a dollar, you could argue that your dollar is worth five candy bars.

That's sort of what happens in the freight industry with what is known as the "currency adjustment factor." Because currencies are always fluctuating around the globe, the freight carrier will charge an additional fee (as a percentage) on their services to offset any downturn in a currency. These fees are traditionally added to trades between Pacific Rim nations and the United States.

The CAF will decrease as the U.S. dollar strengthens, and vice versa.