Definition of Adjustment: Adjustment is referred as the CAF which stands for currency adjustment factor. It increases as the price of U.S dollar decreases. Adjustment is applicable as the percentage on the exchange rate of the foreign countries, which is regarded as a Forex rate meant for the earlier three months. The application for this kind of charge is designed for the trade shipments mainly between the countries located near the Pacific Ocean and United States. It is also applicable on the freight costs by the carriers which service trade in the above mentioned areas. This particular charge was invented due to the expenditures that are incurred by the carriers from repeatedly changing the exchange rates between U.S.A dollar and foreign currencies. Because of this extra cost the shippers are nowadays finding ways to make an entry into the inclusive contracts at single cost that asks for applicable charges to lessen the effect of currency adjustment factor, also known as CAF.
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