USD $$$ or CAN $$$

ZoCNX

ZoCNX

Active Member
Mar 7, 2016
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Out of curiosity, I would like to see your guys opinion.

Simple load from point A to point B.
RATE $5000.00 USD or $6362 CAN (based on today's rate)
Payment will be made to you within 45 - 60 days.
You need to agree on currency option today.

Would you agree on CAN $$$ rate? or USD $$$?
and why?
 
As a 3PL I prefer to quote in Canadian Dollars. This way I don't have to roll the conversion dice. I quote the Canadian amount I need and don't care what the dollar does, my buck is my buck.
 
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ZoCNX said:
Out of curiosity, I would like to see your guys opinion.

Simple load from point A to point B.
RATE $5000.00 USD or $6362 CAN (based on today's rate)
Payment will be made to you within 45 - 60 days.
You need to agree on currency option today.

Would you agree on CAN $$$ rate? or USD $$$?
and why?
Click to expand...

what currency is your cost in is needed to give a educated guess answer on this

but Vegas has as good as odds as playing currencies
 
Last edited:
Agree with Shakey,

If you pay and collect in the same currency (and plan to pay close to the same time as you collect) then you have nothing to worry about.

Keep well,
Mike
 
What ever currency your customer uses to pay you. If I'm paid in US dollars then I pay my carrier in US dollars. That way my margin isn't subject to currency fluctuations.
 
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I'm guessing for the broker(s) point of view it's easy.
Got USD paying in USD, got in CAN paying in CAN. WIN - WIN situation :)
As a carrier, we are all over the place (some expenses in USD some expenses in CAN), so for us it is "Vegas" we paying for expenses now but getting payment later.
I would love to here carrier's opinion on it. USD??? or CAN???
 
As a carrier, I prefer to get paid in Canadian dollars. I don't care about what their US rate is and what it converts to in Canadian dollars at the time.
 
ZoCNX said:
I'm guessing for the broker(s) point of view it's easy.
Got USD paying in USD, got in CAN paying in CAN. WIN - WIN situation :)
As a carrier, we are all over the place (some expenses in USD some expenses in CAN), so for us it is "Vegas" we paying for expenses now but getting payment later.
I would love to here carrier's opinion on it. USD??? or CAN???
Click to expand...


but that is just the old broker screwing me mentality........stick to what you need to move the load and deal with your decision.........what he makes off you is his business......if you decline the load what does broker make????? Nothing!

I'm on broker side bill us pay us, bill cdn pay cdn. If carrier wont do that I bank extra 5 points to protect myself do same!

Cheers
Shakey
 
USD all the way, we will play the exchange rate roulette, we only change to Canadian when we have too or the exchange rate is really in our favour, otherwise it sits in a US account so if the dollar goes upside down for a bit we just sit on it. If you can afford it you will win more times than you lose.
 
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The conventional wisedom here is that you match your revenues and expenses in the same currency, thereby building a natural hedge against unfavourable currency movements. In other words, if you bill in USD and have costs in CAD, Your margin gets squeezed when the CAD appreciates against the USD. You may adjust pricing on a regular basis and especially in volatile currency environments, but the matching principle is very important...many companies fail for this reason.

Unless you are in the financial markets as a primary business, you might not be so great a predicting currency movements and most larger companies don't engage in this type of speculation...they stick to what they know. You may use a variety of financial instruments to minimize risk, such as forwards contracts or options.

Best of luck to all.
 
Luckily our other part of the business deals mostly in US$ on a daily business buying from US companies so we get the benefit of their knowledge.
 
I would like to do more business in Canadian dollars. My operating line is Canadian (my bank, RBC, doesn't offer a US line).. it hasn't thus far been a huge issue, but I can see it becoming one if my own customers start slowing down their payments. I keep enough money in my US acount to ensure my receivables are always covered... but when sales spike like they did just recently it can get pretty tight paying carriers in 15 days when my shippers pay me in 30+. Would love to deal only in Canadian dollars..
 
Most of our clients are Canadian and expect us to bill in CAD. We do however run into situations where we are using a US based vendor and they expect us to pay in USD. In order to reduce the risk of loosing on margins by the time we are paid, we buffer the exchange rate by 5%. For the most part, we end up making a little more in the end. I have a friend whom is an international freight forwarder so deals with CAD, USD and EURO's for the most part. They use the same practice. As per the comments below on a currency exchange provider rather than the bank, we took this route abut 5 years ago and at times we make 1% more than dealing with the bank.
 
Same here.. I deal with Global Currency Exchange in Guelph.. rates always better than the bank..
 
Freight Broker said:
I keep enough money in my US acount to ensure my receivables are always covered... but when sales spike like they did just recently it can get pretty tight paying carriers in 15 days when my shippers pay me in 30+. Would love to deal only in Canadian dollars..
Click to expand...

You should factor!
 
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