The Greenback Won’t Quit
The Australian dollar has been stuck near US $0.65 for months while the US Federal Reserve holds interest rates high. Every USD-based cost — freight, bunker fuel, equipment lease, insurance — now converts into more Aussie dollars. Carriers are recalculating their BAF and CAF formulas monthly, making freight budgets tougher to hold steady.
Winners, Losers and the Fine Print
Importers are taking the hit as USD-denominated bills translate to higher landed costs. Exporters get a leg-up overseas, but local inputs — labour, trucking and depot charges — stay fixed in AUD, clawing back much of the gain. Rate sheets with quarterly validity are suddenly out of step as FX volatility moves faster than contracts can keep up.
Play the Smart Currency Game
- Quote with intent: Decide early whether to price in AUD or USD and state clearly who carries the risk.
- Lock it in: Talk to your bank about short-term FX cover for predictable shipping cycles.
- Keep rates fresh: Shorten rate validity to 14–21 days in volatile windows.
- Run the numbers: Model a ± 5 % AUD/USD swing across freight and surcharges — it’ll show how quickly margins move.
Source: Reserve Bank of Australia – Exchange Rate Statistics & Policy Statement (Nov 2025); ABS Trade in Goods (Sept 2025).
Disclaimer – Market data is from public sources we consider reliable but has not been independently verified; accuracy is not guaranteed