Bunker Adjustment Factor (BAF)

The Bunker Adjustment Factor (BAF) is an additional charge or surcharge applied by shipping lines or carriers to offset fluctuations in fuel prices. As fuel costs are a significant component of operating expenses in the shipping industry, carriers may adjust their freight rates periodically to reflect changes in fuel prices. The BAF helps to pass on the volatile fuel costs to the customers in a transparent and systematic manner.  

The BAF can be calculated using various formulas, and its implementation may vary depending on the shipping route, type of cargo, and other relevant factors. BAF is one of the key factors influencing the overall cost of shipping for cargo owners and can vary depending on market conditions and fuel price movements.