The Trans-Pacific Westbound Rate Agreement (TWRA) is to reduce its currency adjustment factor (CAF) and fuel adjustment factor (FAF) surcharges for the quarter starting October 1. The CAF would be lowered from 51 to 49 per cent for Japan cargo, 5 to 4 per cent for Korean shipments and 10 to 9 per cent for Taiwan cargo. The move followed the strengthening of the United States dollar against most Asian currencies since July. The CAF surcharge to Singapore will remain at 16 per cent between October and December as the Singapore dollar has not shown any significant movement against the US currency. TWRA is to lower its FAF surcharge to US$100 per 40-foot container, $80 per 20-foot container, $50 per vehicle rated on a per-unit basis and $5 per metric tonne or cubic metre for cargo not rated on a per-container basis. TWRA adjusts the surcharges quarterly based on established formulas that measure cost impacts on exchange rate and marine fuel price fluctuations. The surcharges are intended to assist carriers in managing rising external costs beyond their control.