The manner in which CAFs have been applied to cargo carried by lines appears to be both arbitrary and secretive. This note intends to give some clarification as to how the CAF is calculated and the manner in which it is applied.

    The operation of the two methods, i.e. the monthly review and the radical review, is merely a device which enables conferences to adjust effective charges so as to leave lines without a loss in real revenue, although minor losses and gains will be inevitable as the operation of the CAFs take time to be implemented.

    Finally it is hoped to point out the volatilc nature of CAF changes impinges upon the uncertainty of lines' costs.


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    Title :

    Currency adjustment factors


    Contributors:

    Published in:

    Publication date :

    1980-01-01




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    Unknown



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