A job that made money at quote and lost it at payment
A shipment was quoted to a UK importer in sterling, based on a dollar ocean freight rate converted at the day's rate. By the time the carrier's invoice was paid, six weeks later, the dollar had moved. The margin on the job, which looked healthy at quote, has shrunk, and nobody can tell from the job report how much of the change was currency and how much was an extra charge.
Across hundreds of jobs a month, those movements add up, in one direction or the other.
Why currency effects are invisible
Currency conversion happens at several points in a job, often using different rates, and the job report shows only the result.
- Quotes are converted at a rate chosen on the day, sometimes with a buffer, sometimes not.
- Supplier invoices are converted at the rate on invoice date or payment date.
- Customer invoices may be in a different currency again.
- Job profit shows a single figure, with no split between currency and cost changes.
- Nobody sees total exposure across open jobs in each currency.
What it costs
Margin is lost, or occasionally gained, without anyone deciding it. Sales teams cannot tell whether a lane is less profitable or the currency has simply moved. And without seeing exposure across open jobs, the business cannot discuss sensibly with its bank or adviser whether to do anything about it. We do not give financial or hedging advice; this is about seeing the numbers clearly.
The margin tracking we build
- For each job, the rate used at quote is recorded with the buy and sell amounts in their original currencies.
- Supplier invoices and customer invoices are recorded in their original currency with the rate used to convert them.
- The margin movement on each job is split into currency effect, real cost change and extra charges.
- An exposure view shows open jobs by currency: amounts still to pay and receive, and the rates they were quoted at.
- Quote rules can apply a buffer you choose when converting, and the tool shows how often buffers were enough.
- Reports show currency effects by lane, customer and period.
| Question | Today | With margin tracking |
|---|---|---|
| Why did margin change? | Unknown | Currency, cost and extras split out |
| What rate was quoted? | Somewhere in the quote | Recorded on the job |
| What are we exposed to? | Nobody knows | Open jobs by currency |
| Are our buffers enough? | Guesswork | Compared with outcomes |
What you can do with it
Sales can tell a lane that has become less profitable from one where the currency moved. Management can see exposure across open jobs in each currency, and take that to their finance adviser or bank. Quote buffers can be set from what actually happened rather than habit. And monthly margin can be explained, not just reported.
The same record helps with customer conversations. If a customer on a sterling tariff is on lanes bought in dollars, and currency has moved against you for months, you can show the effect when you review their rates, rather than simply asking for more. Some forwarders choose to agree currency adjustment clauses with larger customers; whether that suits you is a commercial and financial decision, and the data makes the discussion concrete.
Checklist
- You buy in one currency and sell in another.
- Job margins change without a clear reason.
- Quote rates are not recorded on the job.
- Nobody knows total currency exposure.
- Currency buffers on quotes are set by habit.