The Currency Adjustment Factor (CAF) is an extra fee applied by shipping companies to offset risks arising from major fluctuations in foreign currency exchange rates. It is specifically imposed by water carriers. The purpose of the CAF is to compensate for potential losses or gains resulting from currency value changes. This surcharge is typically calculated as a percentage of the basic sea freight cost. By accounting for the CAF, logistics professionals can effectively manage and plan for the costs associated with international shipping, considering the impact of currency fluctuations on their shipments.