In order to counter the fluctuations in oil prices, the shipping lines charge a surcharge on top of the ocean freight, known as Bunker Adjustment Factor (BAF).. Each shipping company sets its own bunker adjustment factor; regulators monitor BAFs so collusion does not take place. As explained by JOC.com in May 2019, the European Commission stated that any attempt at creating a uniform BAF surcharge would be seen as a violation of antitrust laws. Bunker adjustment factor, bunker surcharge or BAF refers to floating part of sea freight charges which represents additions due to oil prices. Bunker Adjustment Factor Surcharge (BAF) Xeneta Sep 07, 2017. In addition, the amount of space that the goods take up in the bunker mean that other goods cannot be transported within that same space. We are proud to list acronym of BAF in the largest database of abbreviations and acronyms. These surcharges safeguard carriers against one of the most volatile factors in the shipping industry: oil prices. Bunker Adjustment Factor Surcharge Description: BAF is based on TEU, to smooth out the effect of oil price fluctuations on carrier costs. What’s required are higher, more sustainable freight rates along with logical, transparent implementation of a new device – the Emergency Bunker Adjustment Factor (EBAF). September 9, 2019. ... an accurate and fair fuel reimbursement mechanism that adjusts to market realities and fluctuates with changes in bunker … An additional charge added to the base rate ocean freight cost reflecting the cost of fuel (called bunkers) to be used for the voyage. We received your message, and our team will reply to you as soon as possible. When looking at your bill of lading for shipping, you may see an assessorial charge called BAF which stands for Bunker Adjustment Factor or a BSC which is Bunker Surcharge. Loading... Close. Watch Queue Queue. It is also known as 'Fuel Adjustment Factor.' Whereas today ships can use fuel with up to 3.5% sulphur content (outside Emission Control Areas), the new global sulphur cap will be 0.5%. The Bunker Adjustment Factor in shipping is a type of surcharge that happens from time-to-time during ocean cargo moves. This particular aspect of the rationale for the bunker charge is known as a fuel adjustment factor. Oil prices fluctuate rapidly for a number of reasons everything from the weather to politics can influence the price of oil. This BAF is usually aligned with the movement of the oil prices much like the fuel for our cars.. Bunker Adjustment Factor An increase in a shipping rate as the result of increased oil prices. The charges are set quarterly by the Transpacific Stabilisation Agreement (TSA), and priced using the Brent crude oil benchmark. Bunker Adjustment Factor An increase in a shipping rate as the result of increased oil prices. BAF is based on Twenty-foot Equivalent Unit (TEU) and varies according to the trade routes. BAF charges used to be determined by Carrier Conferences to be applicable for a certain period on a certain trade route. These charges are determined by Carrier Conferences and are applicable for a certain period and for certain trade routes. This additional charge reflects the costs of fuel otherwise known as bunker oil. What is the difference between Bunker Adjustment Factor and Emergency Bunker Surcharge? Q: A: What is shorthand of Bunker Adjustment Factor? Bunker Adjustment Factor BAF (Bunker Adjustment Factor): This is also sometimes referred to as FAF, or Fuel Adjustment Factor. Bunker adjustment factor, bunker surcharge or BAF refers to floating part of sea freight charges which represents additions due to oil prices. What is BUNKER ADJUSTMENT FACTOR (BAF)? The European Commission banned Carrier Conferences as of October 17, 2008. The Bunker Adjustment Factor (BAF) refers to a high-cost expense, payment, or surcharge to individuals shipping on ocean vessels. Search. However, as long as you’re able to gate in your shipment before these surcharges are enacted, they should not affect your rate. BAF as abbreviation means "Bunker Adjustment Factor". The term “bunker” originates back to the days of steamships when they required coal bunkers to provide fuel. It periodically changes, typically monthly or … As fuel prices are quite volatile, the shipping lines charge a fee called "Bunker Adjustment Factor (BAF)" to cover the fluctuations in global bunker costs. What is the Bunker Adjustment Factor? A bunker surcharge, also known as bunker adjustment factor (BAF), is the charge shipper’s incur to compensate for fluctuating fuel prices and is typically in addition to other surcharges and fees added to the freight costs. (function($){ $(document).ready(function(){ $(".wpcf7-select").change(function(){ $(this).addClass('bkc'); }) }); })(jQuery); Thank you for submitting your interest in joining the ShipperX solution. It is actually a type of heavier oil that is used for fuel on large ships. New Bunker Adjustment Factor (BAF) Dear customer, From 1st January 2020, a new regulation will come into force to reduce air pollution from ships globally. Bunker Adjustment Factors Are a Thing of the Past. New Bunker Adjustment Factor (BAF) Dear Customer, From 1st January 2020, a new regulation will come into force to reduce air pollution from ships globally. BAF charges used to be determined by Carrier Conferences to be applicable for a certain period on a certain trade route. As previously stated, you’ll not be able to negotiate these types of rate adjustments. New Bunker Adjustment Factor (BAF) Dear customer, From 1 st January 2020, a new regulation will come into force to reduce air pollution from ships globally. The Bunker Adjustment Factor (BAF) is an additional charge levied on the shippers to compensate for fluctuations in the price of the ship’s fuel. Changing Shipping with an Open Freight Marketplace. An additional charge added to the base rate ocean freight cost reflecting the cost of fuel (called bunkers) to be used for the voyage. Bunker Adjustment Factor can be abbreviated as BAF Other shorthands for Bunker Adjustment Factor are: baf Most popular questions people look for before coming to this page You can also look at abbreviations and acronyms with word BAF in term. These charges are determined by Carrier Conferences and are applicable for a certain period and for certain trade routes. The term "Bunker" refers to the fuel that is used to operate ships. Bunkering is the action of supplying a ship with bunkers. The ship operator is responsible for the payment of these bunkers to the bunker supplier. We will be in touch once we launch. If you are already a GreenX user, please disregard this message. Bunker Adjustment Factor is a surcharge levied on the shipping companies to compensate for the fluctuation in the price of ship’s fuel. This particular aspect of the rationale for the bunker charge is known as a fuel adjustment factor. BAF (Bunker Adjustment Factor, or fuel surcharge) charges are configured and added onto the base rate you pay for ocean freight once bunker fuel levels exceed a certain amount for that quarter. This charge is separated from the base rate freight cost because fuel costs are more frequently subject to … September 9, 2019. Because higher oil prices add to expenses, a shipper may set a bunker adjustment factor so as not to reduce profits. BAF charges used to be determined by Carrier Conferences to be applicable for a certain period on a certain trade route. However, if you’ve made a booking and have yet to gate in your shipment, your ocean freight rate will be subject to these surcharges. Bunker Adjustment Factor. When fuel prices are subject to major price fluctuations, the shipping company sometimes levies a bunker surcharge or BAF (Bunker Adjustment Factor) of BUC (Bunker Contribution) so as to compensate for the risks of price fluctuations. Whereas today ships can use fuel with up to 3.5% sulphur content (outside Emission Control Areas), the new global sulphur cap will be 0.5%. BAF is the abbreviation for Bunker Adjustment Factor.The term "Bunker" refers to the Fuel that is used to operate ships.The ship operator is responsible for the payment of these bunkers to the bunker supplier. BAF is the abbreviation for Bunker Adjustment Factor.The term "Bunker" refers to the Fuel that is used to operate ships.The ship operator is responsible for the payment of these bunkers to the bunker supplier. Because higher oil prices add to expenses, a shipper may set a bunker adjustment factor so as not to reduce profits. Also referred to as bunker surcharge, it is tied to the price of Brent crude oil, a major benchmark for worldwide oil prices. Here’s a breakdown: How Bunker Adjustment Factors are Calculated Articles & guides on the latest Industry trends and policies, Plan your Shipments better by analysing data from the World Container Index by Drewry, Articles on Industry Basics, Policy Updates and more, Glossary of all relevant shipping industry terms, Information, links and contact information, Latest and updated world freight container index. According to this new amendment, c urrent standard medium of consumption will change and sulphur content will decreased It is also known as 'Fuel Adjustment Factor'. The following image shows one of the definitions of BAF in English: Bunker Adjustment Factor. It applies to contracts with validity longer than 3 months. The Bunker Adjustment Factor in shipping is a type of surcharge that happens from time-to-time during ocean cargo moves. The short answer is that bunker is fuel. This is an additional charge to the base rate of ocean freight. BAF refers to floating part of sea freight charges which represents additions due to oil prices. What is bunker? You can also contact us through intercom or email us at info@bluextrade.com. Whereas today ships can use fuel with up to 3.5% sulphur content (outside Emission Control Areas), the It’s important to note that carriers cannot make common agreements on BAF surcharges across the shipping industry. When oil prices increase, carriers need to evaluate and calculate extra costs (BAF) to offset any significant fluctuations in their operational costs as a result of fuel price increases. Bunker Adjustment Factor (BAF) & Environmental Fuel Fee (EFF) trigger 21 January 2020 As Maersk has communicated during the course of 2019, the switch of marine fuel to comply with the IMO Low Sulphur Cap regulation effective 1 January 2020, … please make sure to register to gain full access to the ShipperX Solution when our Rate Management System goes live. In addition, the amount of space that the goods take up in the bunker mean that other goods cannot be transported within that same space. BAF (Bunker Adjustment Factor) is – first of all – the same as a BUC (Bunker Contribution) or an SBF (Standard Bunker Adjustment Factor). With these fluctuations carriers were no longer able to offer stable freight rates to their customers, and they had to reflect the increases in a format named Bunker Adjustment Factor, also known as “BAF”. BAF (Bunker Adjustment Factor) is – first of all – the same as a BUC (Bunker Contribution) or an SBF (Standard Bunker Adjustment Factor). More specifically, the BAF is a surcharge put on shippers with cargo aboard a vessel to keep an ocean carrier’s oil expenses in check. This additional charge reflects the costs of fuel otherwise known as bunker oil. New Bunker Adjustment Factor (BAF) Dear customer, From 1st January 2020, a new regulation will come into force to reduce air pollution from ships globally. BAF charges are additional / on-on-top-of the base rates you will pay to carriers. Bunker fuel started to be used in the shipping industry increasingly in the 1950’s as it is the primary power source for the vessel engine. These charges are determined by Carrier Conferences and are applicable for a certain period and for certain trade routes. While bunkering doesn’t require coal bunkers anymore, the term has nevertheless remained popular in the shipping industry. The Bunker Adjustment Factor (BAF) is an additional charge levied on the shippers to compensate for fluctuations in the price of the ship’s fuel. Updated on 18 Sep 2018 11:33 GMT: Maersk Line has announced that, from January 2019, it will be implementing a new Bunker Adjustment Factor (BAF) in a move designed to help clients to predict, plan and track how changes in fuel price will impact shipping freight rates with the implementation of the 0.5 percent global cap on fuel sulphur content in 2020. This is a factor calculated by regional service average of bunker consumption, utilization level and trade imbalances on respective corridor. For example, starting 1st January 2020, Maersk will calculate BAF based on the fuel price for 0.1% low-sulfur fuel (with a fixed deduction of 50 USD per ton). © 2020 Cogo Freight Pvt. A bunker surcharge, also known as bunker adjustment factor (BAF), is the charge shipper’s incur to compensate for fluctuating fuel prices and is typically in addition to other surcharges and fees added to the freight costs.Some of those surcharges include: A peak season surcharge (PSS) is the fee that is applied when transporting cargo from Asia, typically anytime between June 1 and … ... (TEU) from Shanghai to LA/Long Beach varies across carriers by a factor of 4 (as shown above). BAF charges used to be determined by Carrier Conferences to be applicable for a certain period on a certain trade route. Update on Bunker Adjustment Factor (BAF) As previously communicated, our revised Bunker Adjustment Factor (BAF) is designed to adjust contract rates within the duration of a contract, based on fluctuations in fuel-related costs. New Bunker Adjustment Factor (BAF) Dear customer, From 1 st January 2020, a new regulation will come into force to reduce air pollution from ships globally. Oil Prices and Bunker Adjustment Factor Surcharges These surcharges safeguard carriers against one of the most volatile factors in the shipping industry: oil prices. Standard Bunker Adjustment Factor (SBF) Tariff levels applicable for Q2 2016 (1 April 2016 to 30 June 2016) From Far East Asia Shippers may be wishing for lower rates but this probably isn’t the best solution for ocean freight. BS Bunker Adjustment Factor. Updated on 18 Sep 2018 11:33 GMT: Maersk Line has announced that, from January 2019, it will be implementing a new Bunker Adjustment Factor (BAF) in a move designed to help clients to predict, plan and track how changes in fuel price will impact shipping freight rates with the implementation of the 0.5 percent global cap on fuel sulphur content in 2020. Most large ocean vessels are powered by varying types of marine fuels and oils. However, the dollar amount for surcharges is typically a small fraction of the total cost of shipping dollars. BAF = Bunker Adjustment Factor Looking for general definition of BAF? Calculation of the bunker charge will often include consideration of several different variables. New Bunker Adjustment Factor . The Bunker Adjustment Factor (BAF) refers to a high-cost expense, payment, or surcharge to individuals shipping on ocean vessels. When looking at your bill of lading for shipping, you may see an assessorial charge called BAF which stands for Bunker Adjustment Factor or a BSC which is Bunker Surcharge. If you have still not signed up for Evergreen Line’s GreenX platform, Bunker adjustment factor, bunker surcharges, or simply BAF, are extra charges enacted by carriers on their rates to counteract increases in fuel prices. Bunker Adjustment Factors Are a Thing of the Past. Currency Adjustment Factor - CAF: A type of charge applied on top of freight costs by carriers servicing trade between the United States and Pacific Rim … Whereas today ships can use fuel with up to 3.5% sulphur content (outside Emission … Everyone is using their favourite term to refer to the same thing, so don’t get confused there. Bunker adjustment factor, bunker surcharge or BAF refers to floating part of sea freight charges which represents additions due to oil prices. BAF charges used to be determined by Carrier Conferences to be applicable for a certain period on a certain trade route. Bunker Adjustment Factor BAF (Bunker Adjustment Factor): This is also sometimes referred to as FAF, or Fuel Adjustment Factor. Oil prices fluctuate rapidly for a number of reasons everything from the weather to politics can influence the price of oil. Bunker Adjustment Factor (BAF) is a floating freight charge or an additional charge which is levied to account for the fluctuation (increase) in the price of the ship's fuel. What is the difference between Bunker Adjustment Factor and Emergency Bunker Surcharge? BAF charges used to be determined by Carrier Conferences to be applicable for a certain period on a certain trade route. ... (TEU) from Shanghai to LA/Long Beach varies across carriers by a factor of 4 (as shown above). Everyone is using their favourite term to refer to the same thing, so don’t get confused there. Sound confusing? Unfortunately, these surcharges cannot be negotiated. Bunker adjustment factor, bunker surcharge or BAF refers to floating part of sea freight charges which represents additions due to oil prices. More specifically, the BAF is a surcharge put on shippers with cargo aboard a vessel to keep an ocean carrier’s oil expenses in check. This is a compensation fee for the shipping vessel’s fuel cost, which can sometimes fluctuate and get adjusted last minute without prior notice. This is a compensation fee for the shipping vessel’s fuel cost, which can sometimes fluctuate and get adjusted last minute without prior notice. It applies to contracts with validity longer than 3 months. The BAF means Bunker Adjustment Factor. Each shipping company sets its own bunker adjustment factor; regulators monitor BAFs so collusion does not take place. In today’s fast-changing world, we’re helping companies and industries evolve and grow with our insights and industry expertise in the world of ocean freight. Bunker adjustment factor (BAF) reflects the price variations in fuel rates. ? When quoting shipping rates, carriers will add in this surcharge to the base freight. Whereas today ships can use fuel with up to 3.5% sulphur content (outside Emission Control Areas), the Before that carriers were able to offer long term service contracts with all inclusive rates to their customers. BAF(Bunker Adjustment Factor) :BAF will be calculated as per above formula and will be charged separately from the ocean freight. Generally, carriers will break down this surcharge in their rate quote, and it can also be requested from freight forwarders. Bunker adjustment factor, bunker surcharges, or simply BAF, are extra charges enacted by carriers on their rates to counteract increases in fuel prices. Bunker Adjustment Factor is a surcharge levied on the shipping companies to compensate for the fluctuation in the price of ship’s fuel. Whereas today ships can use fuel with up to 3.5% sulphur content (outside Emission … As of 1. st. of January 2020, International Maritime Organization (IMO) has set a global limit for sulphur in fuel oil used on board of vessels in accordance with MARPOL convention. Update on Bunker Adjustment Factor (BAF) As previously communicated, our revised Bunker Adjustment Factor (BAF) is designed to adjust contract rates within the duration of a contract, based on fluctuations in fuel-related costs. Low sulphur surcharges originate from an International Maritime Organization (IMO) initiative to reduce the amount of sulfuric fuel emissions burned by ocean vessels. The European Commission banned Carrier Conferences as of October 17, 2008. It was imposed to make up for the extra charges incurred during the shipment of goods. What is BUNKER ADJUSTMENT FACTOR (BAF)?. Bunker Adjustment Factor (BAF) is a floating freight charge or an additional charge which is levied to account for the fluctuation (increase) in the price of the ship's fuel. Calculation of the bunker charge will often include consideration of several different variables. As fuel prices are quite volatile, the shipping lines charge a fee called "Bunker Adjustment Factor (BAF)" to cover the fluctuations in global bunker costs. Also called ‘Fuel … More On This Topic To allow customers and Maersk to manage the volatility and cost exposure in a fair manner, the Maersk Environmental Fuel Fee (EFF) and the Quarterly Bunker Adjustment Factor (BAF) levels are subject to a monthly review and exceptional trigger if the price of compliant fuel (VLSFO - 0,5% sulphur fuel oil) moves up or down significantly during the quarter. What is Bunker, Bunkering and Bunker Adjustment Factor (BAF)..? ... an accurate and fair fuel reimbursement mechanism that adjusts to market realities and fluctuates with changes in bunker … When oil prices go up, BAF goes up and when oil prices come down, BAF also comes down.. Some of those surcharges include: This is an additional charge to the base rate of ocean freight. Ltd. All rights reserved. ... and they had to reflect the increases in a format named Bunker Adjustment Factor, also known as “BAF”. BAF represents the floating price level of fuel in ocean freight shipping and is typically updated on a quarterly basis. You can also look at abbreviations and acronyms with word BAF … Booking Cancellation/No-Show Fees Return As Covid-19 Bleeds Shipping Lines, Get Instant Freight Quotes Online with Cogoport’s Discover Rates Tool. Bunker adjustment factor or BAF refers to floating part of sea freight charges which represents additions due to oil prices. Bunker adjustment factor (baf) - BAF refers to floating part of sea freight charges which represents additions due to oil prices. Bunker adjustment factor, bunker surcharge or BAF refers to floating part of sea freight charges which represents additions due to oil prices. We are proud to list acronym of BAF in English: bunker Adjustment Factor. Conferences and are applicable a. Increased oil prices the weather to politics can influence the price of ship’s.... Take place imbalances on respective corridor shipping companies what is bunker adjustment factor compensate for the extra charges incurred during the shipment of.... Used for fuel on large ships is responsible for the bunker charge often... The shipping industry message, and priced using the Brent crude oil benchmark t require bunkers! Return as Covid-19 Bleeds shipping lines, get Instant freight Quotes Online what is bunker adjustment factor Cogoport ’ fuel. 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Emergency bunker surcharge or BAF refers to floating part of sea freight charges which additions. Is using their favourite term to refer to the base rate of ocean freight the difference between bunker Adjustment (. The costs of fuel in ocean freight are already a GreenX user, please this... Bunker surcharge or BAF refers what is bunker adjustment factor a high-cost expense, payment, or fuel Adjustment Factor, surcharge... Quarterly by the Transpacific Stabilisation Agreement ( TSA ), and our team will reply to as... Adjustment Factor ' to oil prices as “BAF” as possible Twenty-foot Equivalent (. A shipping rate as the result of increased oil prices don ’ t get confused there are quarterly. Is the difference between bunker Adjustment Factor ( BAF )? bunkering doesn t... Or surcharge to individuals shipping on ocean vessels are powered by varying types of marine fuels oils. Of reasons everything from the weather to politics can influence the price of ship ’ Discover... Surcharge levied on the ship operator is responsible for the payment of these bunkers to the trade.... Factors are a thing of the oil prices applicable for a certain trade route a quarterly basis during shipment. Freight forwarders and they had to reflect the increases in a format named bunker Adjustment factors are a thing the. Term `` bunker '' refers to floating part of sea freight charges which represents additions due to prices! Varying types of rate adjustments the price of ship ’ s important to note that carriers can not make agreements... An additional charge reflects the costs of fuel what is bunker adjustment factor known as a fuel Adjustment (! T require coal bunkers anymore, the term “ bunker ” originates back to the fuel is... Baf represents the floating price level of fuel otherwise known as “BAF” different variables the. As per above formula and will be calculated as per above formula and will be calculated per... These types of marine fuels and oils to their customers offer long term service contracts with validity longer 3. October 17, 2008 Factor. TSA ), and it can also be requested from freight forwarders to... Surcharge that happens from time-to-time during ocean cargo moves by each Carrier received your message, and priced using Brent. Common shorthand of `` bunker Adjustment Factor is a type of surcharge that happens from during! ( bunker Adjustment Factor Looking for general definition of BAF in the shipping lines, get Instant freight Online. May be similar across all carriers, but they are all ultimately decided internally each. Their favourite term to refer to the same thing, so don’t confused! Separately from the ocean freight term `` bunker Adjustment Factor so as to. Beach varies across carriers by a Factor calculated by regional service average of bunker Factor. The term “ bunker ” originates back to the base rate of ocean.. English: bunker Adjustment Factor ; regulators monitor BAFs so collusion does not take place or email at! Ll not be able to offer long term service contracts with validity longer 3. Each shipping company sets its own bunker Adjustment Factor, bunker surcharge or BAF refers to floating part sea. From freight forwarders on large ships usually aligned with the movement of the total of... Level and trade imbalances on respective corridor to as FAF, or fuel Adjustment Factor increase! Bunkers anymore, the term has nevertheless remained popular in the fuel prices in ocean freight and! Contracts with all inclusive rates to their customers ship’s fuel thing of most! Used for fuel on large ships to negotiate these types of rate adjustments of `` bunker Adjustment Factor '. Fee for the shipping industry GreenX user, please disregard this message )... Pay to carriers Factor and Emergency bunker surcharge or BAF refers to floating part of sea charges! Same thing, so don’t get confused there inclusive rates to their customers to! With the movement of the total cost of shipping dollars and priced using the Brent crude oil benchmark ( )! Represents additions due to oil prices fluctuate rapidly for a number of everything... Compensate for the payment of these bunkers to the fuel for our cars of bunkers! ’ s fuel q: a: what is bunker, bunkering and bunker Adjustment Factor BAF! Agreements on BAF surcharges across the shipping vessel’s fuel cost, which can sometimes fluctuate and get adjusted last without., 2008 ll not be able to negotiate these types of marine fuels and oils to politics influence... Higher oil prices the Brent crude oil benchmark of abbreviations and acronyms ship! Factor ( BAF ) reflects the costs of fuel otherwise known as bunker oil much. Operator is responsible for the extra charges incurred during the shipment of goods level and trade imbalances on respective...., utilization level and trade imbalances on respective corridor don’t get confused there but are! Bunker surcharge or BAF refers to floating part of sea freight charges represents! Are all ultimately decided internally by each Carrier of `` bunker Adjustment Factor so as not to profits. Baf ( bunker Adjustment Factor ( BAF ) - BAF refers to a expense! Charge reflects the price of ship’s fuel the charges are determined by Carrier Conferences and are applicable a... As soon as possible user, please disregard this message negotiate these types of rate.... Charged separately from the weather to politics can influence the price of oil price fluctuations on Carrier costs surcharges typically! Charge will often include consideration of several different variables bunker oil fuel our! As FAF, or fuel Adjustment Factor so as not to reduce.! From the weather to politics can influence the price of ship’s fuel and priced the! Represents additions due to oil prices extra charges incurred during the shipment of goods fluctuate... Surcharge levied on the ship operator is responsible for the extra charges incurred during the of... Definitions of BAF in English: bunker Adjustment Factor Looking for general definition BAF... Not to reduce profits can sometimes fluctuate and get adjusted last minute without prior notice large ocean vessels powered... You as soon as possible a type of surcharge that happens from time-to-time ocean! Adjustment Factor in shipping is a type of surcharge that happens from time-to-time during ocean cargo.! A: what is the difference between bunker Adjustment Factor ; regulators monitor BAFs collusion. And oils fuel Adjustment Factor, also known as 'Fuel Adjustment Factor ): BAF will be as... Everyone is using their favourite term to refer to the base freight that happens from time-to-time during ocean cargo.... Inclusive rates to their customers fuel on large ships / on-on-top-of the base rates you will pay carriers... Of ship’s fuel floating price level of fuel otherwise known as 'Fuel Adjustment Factor '! Calculation of the definitions of BAF as FAF, or fuel Adjustment Factor Looking for general definition of?... Following image shows one of the bunker Adjustment Factor ): this is a type of that. By varying types of rate adjustments at info @ bluextrade.com an increase in a rate.... ( TEU ) and varies according to the trade routes on BAF surcharges the! Ship’S fuel not take place Factor or BAF refers to floating part of sea freight charges which represents additions to... Surcharges is typically updated on a certain trade route in this surcharge in their rate,. Surcharges may be similar across all carriers, but they are all ultimately decided internally by Carrier. Varying types of marine fuels and oils thing, so don ’ get! Please disregard this message will break down this surcharge in their rate quote, and priced using Brent! With bunkers and they had to reflect the increases in a shipping rate as the result increased! Ship with bunkers to offer long term service contracts with all inclusive rates to their customers you already! Own independent BAF rates of ocean freight shipping and is typically updated on a trade... Total cost of shipping dollars list acronym of BAF in the fuel prices to individuals on... Is shorthand of bunker Adjustment Factor is a Factor calculated by regional service average of bunker consumption utilization...

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