Pricing & Surcharges

BAF (Bunker Adjustment Factor)

Illustration for BAF (Bunker Adjustment Factor), Pricing & Surcharges

A fuel surcharge applied to ocean freight rates to reflect changes in bunker (fuel) costs. Fluctuates with oil prices and is added to base ocean freight.

In depth

Bunker adjustment factor (BAF) passes fuel price volatility to shippers as a surcharge on top of base ocean freight. Lines publish BAF tables by trade lane, often monthly. It is separate from general rate increases (GRI) and emergency surcharges.

Key points

  • Tied to marine fuel indices and trade lane
  • Check whether BAF is all-in or subject to further adjustment
  • May appear as BAF, FAF, or within bunker recovery clauses
  • Contract BAF formula vs tariff BAF: know which applies

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Related terms

CAFPSS
BAF (Bunker Adjustment Factor): Freight Glossary | CargoLinked | CargoLinked