Freight
CAF
Also known as: Currency Adjustment Factor
Currency fluctuation adjustment applied by carriers when exchange rates move significantly. Protects carriers from currency risk on long-term contracts.
Cost Category
CAF is classified as a Freight charge in landed cost calculations.
Freight charges relate to the physical transportation of goods, including shipping, handling, and port fees.
Landed Cost Impact
This charge is typically allocated across your products when calculating landed cost per unit.
- Adds to your true product cost
- Should be factored into pricing
- Impacts your profit margins
Related Keywords
currencyadjustment
Calculate your landed costs automatically
Landara's AI extracts charges like CAF from your freight invoices and allocates them across your products automatically.