GlossaryEN1 min readUpdated: Jun 16, 2026
CAF (Currency Adjustment Factor)
Unlike the BAF, which compensates for fuel price swings, the CAF – Currency Adjustment Factor – addresses exchange rate movements between a carrier's billing currency and its actual operating costs.
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Source: https://www.freightos.com/freight-resources/caf-currency-adjustment-factor/
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Logistics Concept
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Definition & Explanation
Unlike the BAF, which compensates for fuel price swings, the CAF – Currency Adjustment Factor – addresses exchange rate movements between a carrier's billing currency and its actual operating costs. It is applied as a percentage surcharge on top of the base freight rate and shown as a separate line item on the freight invoice. CAF is typically recalculated monthly or quarterly and arises most often on trade lanes where contracts are priced in US dollars while the carrier's costs are denominated in another currency. Shippers comparing quotations should factor in CAF carefully, as it can noticeably shift total landed costs depending on prevailing exchange rates.
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