What is a Currency Adjustment Factor?

Following recent major movements in currencies, EwePack along with other shipping companies are adding ‘Currency Adjustment Factor’ onto some invoices.  It’s standard practise to do this with credit account customers since the cost of services may alter between quotation stage and payment being received, thanks to movements in foreign exchange rates.  As a rule, we add 6% CAF to account customers. For example in the spring the USD was 1.50 to the GBP, today its closer to 1.20, meaning a 20% increase in costs to our sterling customers.    Whilst we regret charging CAF, it’s beyond our control.