# Currency Adjustment Factor (CAF)

*Last updated: 2026-06-26*

> When freight rates are fixed in one currency while the carrier's operating costs run in another, exchange-rate exposure follows – the Currency Adjustment Factor (CAF) is the contractual mechanism that passes this risk to the shipper.

When freight rates are fixed in one currency while the carrier's operating costs run in another, exchange-rate exposure follows – the Currency Adjustment Factor (CAF) is the contractual mechanism that passes this risk to the shipper. Calculated as a percentage surcharge on the base freight rate, the CAF is typically recalculated monthly using current market exchange rates and is most prevalent in ocean freight. If the euro strengthens against the US dollar, for instance, a USD-invoicing carrier faces higher relative European costs, and the CAF rises accordingly. Many contracts build in a tolerance band below which no surcharge is levied, limiting administrative friction for minor currency swings. The CAF is distinct from the Bunker Adjustment Factor (BAF), which addresses fuel-cost fluctuations only.

**Source:** [https://www.freightos.com/resources/glossary/currency-adjustment-surcharge](https://www.freightos.com/resources/glossary/currency-adjustment-surcharge)

## Quick Facts

| Property | Value |
|---|---|
| Term | Currency Adjustment Factor (CAF) |
| Language | EN |
| Word count | 122 |
| Last updated | 2026-06-26 |
| Source | https://www.freightos.com/resources/glossary/currency-adjustment-surcharge |

---

*Logistics Glossary — Freight Academy: [https://www.freight-academy.com/en/glossary/currency-adjustment-factor-caf](https://www.freight-academy.com/en/glossary/currency-adjustment-factor-caf)*

*Markdown mirror: [https://www.freight-academy.com/api/md/glossary/en/currency-adjustment-factor-caf](https://www.freight-academy.com/api/md/glossary/en/currency-adjustment-factor-caf)*

*JSON summary: [https://www.freight-academy.com/api/v1/glossary/currency-adjustment-factor-caf/llm-summary?lang=en](https://www.freight-academy.com/api/v1/glossary/currency-adjustment-factor-caf/llm-summary?lang=en)*