A landed rate presented at tender is composed of ex-works product cost, currency conversion, freight, insurance, duty and destination handling. The product cost is the most stable element; the others move independently of it and of each other.
Currency moves against the committed order between award and payment. Where the exposure is material — a full-container order at a soft rate — hedging on the committed portion protects the landed rate against short-term movement. Freight rates move against sailing schedule, port capacity and lane demand.
Where to hold the risk
The rate should be held to a defined freight index and a defined currency. Where either moves outside a stated tolerance, the rate is opened for review with a documented mechanism. Silent absorption on either side is not a commercial position; it is deferred conflict.