# Exchange Rate Impact on Freight Rates

*Last updated: 2026-06-23*

> Shippers, freight forwarders, and ocean carriers face exchange rate exposure on a daily basis: sea freight rates are predominantly quoted in US dollars, while the costs and revenues of all parties typically fall in local currencies.

Shippers, freight forwarders, and ocean carriers face exchange rate exposure on a daily basis: sea freight rates are predominantly quoted in US dollars, while the costs and revenues of all parties typically fall in local currencies. When the dollar strengthens against the euro, import freight becomes more expensive for European buyers even if the nominal rate stays unchanged. In long-term service contracts or sectors where freight represents a significant share of landed cost, currency swings can materially erode margins. Common hedging instruments include forward exchange contracts, currency options, and contractual currency adjustment clauses. This exposure should not be confused with the Currency Adjustment Factor (CAF), a carrier surcharge used on spot markets to pass the carrier's own currency risk on to shippers.

**Source:** [https://en.wikipedia.org/wiki/Freight_rate](https://en.wikipedia.org/wiki/Freight_rate)

## Quick Facts

| Property | Value |
|---|---|
| Term | Exchange Rate Impact on Freight Rates |
| Language | EN |
| Word count | 122 |
| Last updated | 2026-06-23 |
| Source | https://en.wikipedia.org/wiki/Freight_rate |

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