CAF (Cost and Freight)
CAF (Cost and Freight) is a common pricing term used in shipping and freight forwarding. It represents an additional charge that shipping companies add to the basic freight rate to cover fluctuating fuel costs. When someone mentions CAF in a resume or job description, they're usually talking about managing or calculating these additional shipping charges. Think of it like the fuel surcharge on an airline ticket, but for cargo shipping. This term is often seen alongside other shipping terms like BAF (Bunker Adjustment Factor) and is crucial for anyone involved in shipping cost calculations or freight rate management.
Examples in Resumes
Managed CAF and other surcharge calculations for international shipments
Negotiated CAF rates with shipping lines resulting in 15% cost savings
Developed automated system for tracking CAF and Cost and Freight adjustments
Typical job title: "Freight Rate Analysts"
Also try searching for:
Where to Find Freight Rate Analysts
Professional Networks
Example Interview Questions
Senior Level Questions
Q: How would you develop a strategy to minimize the impact of CAF fluctuations on shipping costs?
Expected Answer: A strong answer should discuss analyzing historical CAF trends, building relationships with multiple carriers, negotiating long-term rate agreements, and implementing a system to track and forecast CAF changes.
Q: How do you explain CAF calculations to clients and manage their expectations regarding price changes?
Expected Answer: The candidate should emphasize clear communication methods, providing examples of how they break down complex pricing into understandable terms, and mention experience with client education about market factors affecting CAF.
Mid Level Questions
Q: What factors influence CAF rates and how do you stay updated about these changes?
Expected Answer: Should mention fuel prices, carrier announcements, industry newsletters, and explain how they track these changes to maintain accurate pricing.
Q: How do you calculate total shipping costs including CAF for different routes?
Expected Answer: Should be able to explain the basic formula for calculating shipping costs, including base rates, CAF percentages, and other applicable surcharges.
Junior Level Questions
Q: What is CAF and why is it important in freight forwarding?
Expected Answer: Should explain that CAF is a fuel-related surcharge that affects shipping costs and why it's necessary to understand it for accurate pricing.
Q: How do you find current CAF rates for different shipping lines?
Expected Answer: Should mention checking carrier websites, rate sheets, industry publications, or internal systems where CAF information is maintained.
Experience Level Indicators
Junior (0-2 years)
- Basic understanding of shipping terms and surcharges
- Ability to look up current CAF rates
- Simple cost calculations
- Understanding of shipping documentation
Mid (2-5 years)
- Complex rate calculations
- Carrier negotiations
- Market trend analysis
- Client communication about pricing
Senior (5+ years)
- Strategic rate planning
- Team leadership in pricing
- Contract negotiations
- Market analysis and forecasting
Red Flags to Watch For
- Unable to explain basic shipping cost components
- No knowledge of current market rates and trends
- Lack of experience with rate calculations
- Poor understanding of international shipping terms
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