Managing Exchange-Rate Risk in International Maritime Shipping – Trade News | 04/01/26

In international maritime shipping, exchange-rate risk arises when commercial and financial transactions involve multiple currencies, potentially turning a seemingly profitable shipment into a loss when payments are settled due to currency movements between contract and settlement dates. This risk is especially pronounced in deferred payments, where extended invoicing terms expose services to exchange-rate shifts, and in long-term contracts with freight rates set in one currency while costs accrue in another. A practical risk-management approach is currency matching, aligning revenues and expenses in the same currency — for example invoicing in the currency of major costs — to reduce exposure to currency volatility for shipping lines, importers and exporters. Link to Article