Currency Adjustment Factor - CAF

A type of charge applied on top of freight costs by carriers servicing trade between the United States and Pacific Rim countries. The charge was developed due to costs that carriers incur from constantly changing exchange rates between the U.S. dollar and other foreign currencies.

The currency adjustment factor rises as the value of the U.S. dollar falls. It is applied as a percentage on top of the base exchange rate, which is calculated as the average exchange rate for the previous three months. Due to this added charge, shippers are now looking to enter into "all inclusive" contracts at one price, that accounts for all applicable charges, to limit the effect of the CAF.

In the third quarter of 2005, the CAF charged on shipments to Japan was approximately 51%.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Bunker Adjustment Factor — Der Bunker Adjustment Factor (BAF) ist der so genannte Bunkerzuschlag, der auf die Seefracht einer zu verschiffenden Ware über See erhoben wird. Dieser Zuschlag wurde aufgrund der schwankenden Ölpreise eingerichtet. Der BAF wird in der Regel von… …   Deutsch Wikipedia

  • C.A.F. — Currency Adjustment Factor (Business » International Business) …   Abbreviations dictionary

  • Eiszuschlag — Der Eiszuschlag ist ein Begriff aus der Linienschifffahrt. Er ist ein prozentualer Zuschlag, der auf die Seefracht laut Tarif erhoben wird, um die erschwerten Transportbedingungen sowie das zusätzliche Risiko durch Eis im Fahrwasser auszugleichen …   Deutsch Wikipedia

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • ECONOMIC AFFAIRS — THE PRE MANDATE (LATE OTTOMAN) PERIOD Geography and Borders In September 1923 a new political entity was formally recognized by the international community. Palestine, or Ereẓ Israel as Jews have continued to refer to it for 2,000 years,… …   Encyclopedia of Judaism

  • china — /chuy neuh/, n. 1. a translucent ceramic material, biscuit fired at a high temperature, its glaze fired at a low temperature. 2. any porcelain ware. 3. plates, cups, saucers, etc., collectively. 4. figurines made of porcelain or ceramic material …   Universalium

  • China — /chuy neuh/, n. 1. People s Republic of, a country in E Asia. 1,221,591,778; 3,691,502 sq. mi. (9,560,990 sq. km). Cap.: Beijing. 2. Republic of. Also called Nationalist China. a republic consisting mainly of the island of Taiwan off the SE coast …   Universalium

  • Gross domestic product — GDP redirects here. For other uses, see GDP (disambiguation). Not to be confused with Gross national product or Gross domestic income. CIA World Factbook 2005 figures of total nominal GDP (top) compared to PPP adjusted GDP (bottom) …   Wikipedia

  • United States — a republic in the N Western Hemisphere comprising 48 conterminous states, the District of Columbia, and Alaska in North America, and Hawaii in the N Pacific. 267,954,767; conterminous United States, 3,022,387 sq. mi. (7,827,982 sq. km); with… …   Universalium

  • Russia — /rush euh/, n. 1. Also called Russian Empire. Russian, Rossiya. a former empire in E Europe and N and W Asia: overthrown by the Russian Revolution 1917. Cap.: St. Petersburg (1703 1917). 2. See Union of Soviet Socialist Republics. 3. See Russian… …   Universalium

  • Germany — /jerr meuh nee/, n. a republic in central Europe: after World War II divided into four zones, British, French, U.S., and Soviet, and in 1949 into East Germany and West Germany; East and West Germany were reunited in 1990. 84,068,216; 137,852 sq.… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.