A letter is sent to you informing you of your assigned CAF number. It works out in Dermont’s favor because, at the time of delivery, the adjusted fee would have included a 51 percent increase on top of what they were already paying, which means that half of their profits would have gone towards paying for the loss in currency value. 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. When the cargo is payable in foreign currency and this currency is subject to major exchange rate fluctuations, the shipping company sometimes levies a currency surcharge or CAF (Currency Adjustment Factor) so as to compensate for those exchange rate risks. Add the cost of any freight adjustments your shipping company applies to your transport costs. Nikita has shipped Onyx a large shipment of silicon chips for Onyx to install into their digital cameras. Onur Akarca. Total ocean freight = $2500 + $359 + $300 = $3159, Freight surcharges are no longer updated by conferences. 3rd Floor, Nguyen Lam Tower, 133 Duong Ba Trac Street, Ward 1, Dist. It is charged as a percentage of the basic sea freight. Onur worked as a Logistic Manager for a garment importing company for 10 years before joining MTS. or "LOSER!" Introduction of the IMO 2020 and its Impact on the BAF. He has been working in sales at MTS Logistics since February 2008. Possible CAF meaning as an acronym, abbreviation, shorthand or slang term vary from category to category. CAF calculation example: Top CAF acronym definition related to defence: Currency Adjustment Factor Period of container can be divided into Demurrage and Detention. CAF Stands For: All acronyms (627) Airports & Locations (3) Business & Finance (21) Common (3) Government & Military … Bunker is simply the name given to the Heavy oil used to fuel ocean vessels. A currency adjustment factor is an additional cost on trades between the United States and Pacific Rim countries. In July, 1990 the International Chamber of Commerce replaced C&F with CFR. Customs Bonded Warehouse A public or privately owned warehouse where dutiable goods are stored pending payment of duty or removal under bond. CAF is one of the charges added up on the basic ocean freight by sea shipping carriers on the basis of continues fluctuation of exchange rates. Investopedia uses cookies to provide you with a great user experience. Currency Adjustment Factor CAF is applied on freight rates to minimize or control the losses or gains against fluctuations on the currency exchange rate tariff. BAF. What does these abrevation means in shipping term:BAF, CAF, WRS, ISPS, GRI, PSS, THCs, CGS, PAD, ARB,? From the table above, you can view all meanings of CAF: some are educational terms, the other are medical terms, and even computer terms. Additional terms and fees to local agents of the line usually via port forwarding. The currency adjustment factor rises as the value of the U.S. dollar falls. Not wanting to get caught in the middle of a devaluation of either currency, Dermont asks for the shipping contract to be all-inclusive, which means that there will be an adjustment built in to cover any drop in value. Then Demurrage penalties imposed for excess use of container from its unlo… When shipping FOB, the seller covers the cost of getting the goods to the port nearest them, and then you have to take over. Obsolete, albeit heavily used, term of sale meaning "cargo and freight" whereby Seller pays for cost of goods and freight charges up to destination port. BAF: $359 Ocean Freight can be assessed based on the value of the merchandise as well. 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