In plain English
Exchange rates can change the value of money between currencies, so a freight price may include an extra charge to reflect that movement. This term refers to that extra charge when it is added to freight costs because of currency exchange rate changes.
In context
Here, CAF labels the surcharge line in the ocean quote that adjusts the freight charge for changes in currency exchange rates.
- Situation
- Coordinating freight quotes, booking, consolidation, handoff, and transport documents
- What it communicates
- labels a currency-related surcharge line in the ocean quote.
Meaning limits
By itself, the term does not tell you the surcharge amount or whether exchange rates have actually changed.
Examples
“The carrier added a CAF to the freight charge after the billing currency moved sharply.”
“When the ocean quote was revised, the CAF line increased while the base freight stayed unchanged.”