Industry Solutions

Import &
Export

Currency hedging for international trade, container cost management, and Letter of Credit protection for import/export businesses.

Import/Export Challenges

Container Cost Volatility

Container shipments priced in USD or EUR carry currency risk on top of freight cost volatility. Lock your rate when you book the shipment

L/C Currency Mismatch

Letters of Credit issued in USD but selling in GBP. Lock your conversion rate when the L/C opens, not when it's presented.

Long Lead Times

90-120 day supplier payment terms create extended FX exposure

Duty & VAT Payments

Import duties are calculated on landed cost, so FX moves increase the duty base as well as the price itself.

Example: UK Importer Landed Cost Hedge

A hypothetical example using illustrative figures.

$500k Container Shipment from China

FOB (Free On Board): the price for goods loaded onto the vessel at origin, before freight and insurance. CIF (Cost, Insurance and Freight): FOB plus freight and insurance, the total landed value duty is calculated on.

Cost Breakdown (USD)

FOB Price:$400,000

Freight (10 containers):$80,000

Insurance (0.5%):$2,400

CIF Value (USD):$482,400

Unhedged Risk Analysis

Today (illustrative rate: GBP/USD 1.2500): £385,920 landed

Duty (5%): £19,296

VAT (20%): £81,043

Total Cost: £486,259

If GBP weakens 5% (rate moves from 1.2500 to 1.1875): Landed £406,231.58, Duty (5%) £20,311.58, VAT (20% of landed+duty) £85,308.63, Total £511,851.79 (+£25,592.79)

A 5% move in the exchange rate compounds through duty and VAT, so the total cost impact runs slightly higher than 5%.

Hedged Solution

Action

Book 120-day forward

Lock GBP/USD at 1.2480

Result

£487,038.46 locked

Landed £386,538.46, Duty £19,326.92, VAT £81,173.08

Protection

£24,813 risk eliminated

vs 5% adverse move

Frequently Asked Questions

Protect Your Import Margins

Work with FX specialists who understand international trade.

Industry Solutions

Import &
Export

Currency hedging for international trade, container cost management, and Letter of Credit protection for import/export businesses.

Import/Export Challenges

Container Cost Volatility

Container shipments priced in USD or EUR carry currency risk on top of freight cost volatility. Lock your rate when you book the shipment

L/C Currency Mismatch

Letters of Credit issued in USD but selling in GBP. Lock your conversion rate when the L/C opens, not when it's presented.

Long Lead Times

90-120 day supplier payment terms create extended FX exposure

Duty & VAT Payments

Import duties are calculated on landed cost, so FX moves increase the duty base as well as the price itself.

Example: UK Importer Landed Cost Hedge

A hypothetical example using illustrative figures.

$500k Container Shipment from China

Cost Breakdown (USD)

FOB Price:$400,000

Freight (10 containers):$80,000

Insurance (0.5%):$2,400

CIF Value (USD):$482,400

Unhedged Risk Analysis

Today (illustrative rate: GBP/USD 1.2500): £385,920 landed

Duty (5%): £19,296

VAT (20%): £81,043

Total Cost: £486,259

If GBP weakens 5% (rate moves from 1.2500 to 1.1875): Landed £406,231.58, Duty (5%) £20,311.58, VAT (20% of landed+duty) £85,308.63, Total £511,851.79 (+£25,592.79)

A 5% move in the exchange rate compounds through duty and VAT, so the total cost impact runs slightly higher than 5%.

Hedged Solution

Action

Book 120-day forward

Lock GBP/USD at 1.2480

Result

£487,038.46 locked

Landed £386,538.46, Duty £19,326.92, VAT £81,173.08

Protection

£24,813 risk eliminated

vs 5% adverse move

Frequently Asked Questions

Protect Your Import Margins

Work with FX specialists who understand international trade.

Import &Export

Import/Export Challenges

Container Cost Volatility

L/C Currency Mismatch

Long Lead Times

Duty & VAT Payments

Example: UK Importer Landed Cost Hedge

$500k Container Shipment from China

Cost Breakdown (USD)

Unhedged Risk Analysis

Hedged Solution

Frequently Asked Questions

Protect Your Import Margins

Import &Export

Import/Export Challenges

Container Cost Volatility

L/C Currency Mismatch

Long Lead Times

Duty & VAT Payments

Example: UK Importer Landed Cost Hedge

$500k Container Shipment from China

Cost Breakdown (USD)

Unhedged Risk Analysis

Hedged Solution

Frequently Asked Questions

Protect Your Import Margins

Import &
Export

Import &
Export