Bunker adjustment factor or BAF refers to floating part of sea freight charges which represents additions due to oil prices. As previously stated, you’ll not be able to negotiate these types of rate adjustments. Some of those surcharges include: Whereas today ships can use fuel with up to 3.5% sulphur content (outside Emission Control Areas), the It is also known as 'Fuel Adjustment Factor.' 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 … 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. When quoting shipping rates, carriers will add in this surcharge to the base freight. While bunkering doesn’t require coal bunkers anymore, the term has nevertheless remained popular in the shipping industry. Everyone is using their favourite term to refer to the same thing, so don’t get confused there. Also referred to as bunker surcharge, it is tied to the price of Brent crude oil, a major benchmark for worldwide oil prices. BAF (Bunker Adjustment Factor) is – first of all – the same as a BUC (Bunker Contribution) or an SBF (Standard Bunker Adjustment Factor). This particular aspect of the rationale for the bunker charge is known as a fuel adjustment factor. An additional charge added to the base rate ocean freight cost reflecting the cost of fuel (called bunkers) to be used for the voyage. 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. New Bunker Adjustment Factor . Bunker adjustment factor, bunker surcharge or BAF refers to floating part of sea freight charges which represents additions due to oil prices. 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. Sound confusing? 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%. 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. This BAF is usually aligned with the movement of the oil prices much like the fuel for our cars.. Oil prices fluctuate rapidly for a number of reasons everything from the weather to politics can influence the price of oil. BAF charges used to be determined by Carrier Conferences to be applicable for a certain period on a certain trade route. Calculation of the bunker charge will often include consideration of several different variables. Bunker Adjustment Factor Surcharge (BAF) Xeneta Sep 07, 2017. ... an accurate and fair fuel reimbursement mechanism that adjusts to market realities and fluctuates with changes in bunker … The short answer is that bunker is fuel. ? What is the Bunker Adjustment Factor? Whereas today ships can use fuel with up to 3.5% sulphur content (outside Emission … BS Bunker Adjustment Factor. 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. Bunker Adjustment Factor BAF (Bunker Adjustment Factor): This is also sometimes referred to as FAF, or Fuel Adjustment Factor. If you are already a GreenX user, please disregard this message. ... and they had to reflect the increases in a format named Bunker Adjustment Factor, also known as “BAF”. This additional charge reflects the costs of fuel otherwise known as bunker oil. Bunkering is the action of supplying a ship with bunkers. This is a compensation fee for the shipping vessel’s fuel cost, which can sometimes fluctuate and get adjusted last minute … 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. Because higher oil prices add to expenses, a shipper may set a bunker adjustment factor so as not to reduce profits. It is also known as 'Fuel Adjustment Factor'. BAF refers to floating part of sea freight charges which represents additions due to oil prices. BS Bunker Adjustment Factor. The charges are set quarterly by the Transpacific Stabilisation Agreement (TSA), and priced using the Brent crude oil benchmark. BAF represents the floating price level of fuel in ocean freight shipping and is typically updated on a quarterly basis. BAF charges used to be determined by Carrier Conferences to be applicable for a certain period on a certain trade route. 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. What is the difference between Bunker Adjustment Factor and Emergency Bunker Surcharge? The BAF means Bunker Adjustment Factor. However, as long as you’re able to gate in your shipment before these surcharges are enacted, they should not affect your rate. Bunker Adjustment Factor is a surcharge levied on the shipping companies to compensate for the fluctuation in the price of ship’s fuel. 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. What’s required are higher, more sustainable freight rates along with logical, transparent implementation of a new device – the Emergency Bunker Adjustment Factor (EBAF). BAF charges are additional / on-on-top-of the base rates you will pay to carriers. What is Bunker Adjustment Factor? It’s important to note that carriers cannot make common agreements on BAF surcharges across the shipping industry. This additional charge reflects the costs of fuel otherwise known as bunker oil. 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. Also referred to as bunker surcharge, it is tied to the price of Brent crude oil, a major benchmark for worldwide oil prices. The following image shows one of the definitions of BAF in English: Bunker 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. 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. 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 stands for Bunker Adjustment Factor (also Biological Aerated Filters and 243 more) Bunker Adjustment Factors Are a Thing of the Past. Bunker adjustment factor, bunker surcharge or BAF refers to floating part of sea freight charges which represents additions due to oil prices. More On This Topic 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 charges used to be determined by Carrier Conferences to be applicable for a certain period on a certain trade route. This charge is separated from the base rate freight cost because fuel costs are more frequently subject to … It periodically changes, typically monthly or … 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. It is actually a type of heavier oil that is used for fuel on large ships. The European Commission banned Carrier Conferences as of October 17, 2008. What is bunker? 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. We will be in touch once we launch. It applies to contracts with validity longer than 3 months. These surcharges safeguard carriers against one of the most volatile factors in the shipping industry: oil prices. Generally, carriers will break down this surcharge in their rate quote, and it can also be requested from freight forwarders. 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. Each shipping company sets its own bunker adjustment factor; regulators monitor BAFs so collusion does not take place. Bunker adjustment factor (BAF) reflects the price variations in fuel rates. Ltd. All rights reserved. Most large ocean vessels are powered by varying types of marine fuels and oils. 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. September 9, 2019. Low sulphur surcharges originate from an International Maritime Organization (IMO) initiative to reduce the amount of sulfuric fuel emissions burned by ocean vessels. 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) - BAF refers to floating part of sea freight charges which represents additions due to oil prices. What is the difference between Bunker Adjustment Factor and Emergency Bunker Surcharge? Bunker adjustment factor (baf) - BAF refers to floating part of sea freight charges which represents additions due to oil prices. 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. The European Commission banned Carrier Conferences as of October 17, 2008. ... (TEU) from Shanghai to LA/Long Beach varies across carriers by a factor of 4 (as shown above). 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. Oil prices fluctuate rapidly for a number of reasons everything from the weather to politics can influence the price of oil. 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 (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. However, the dollar amount for surcharges is typically a small fraction of the total cost of shipping dollars. BAF is based on Twenty-foot Equivalent Unit (TEU) and varies according to the trade routes. The ship operator is responsible for the payment of these bunkers to the bunker supplier. Calculation of the bunker charge will often include consideration of several different variables. 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. Changing Shipping with an Open Freight Marketplace. Loading... Close. This charge is separated from the base rate freight cost because fuel costs are more frequently subject to … The Bunker Adjustment Factor in shipping is a type of surcharge that happens from time-to-time during ocean cargo moves. Bunker adjustment factor, bunker surcharge or BAF refers to floating part of sea freight charges which represents additions due to oil prices. 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”. Shippers may be wishing for lower rates but this probably isn’t the best solution for ocean freight. The short answer is that bunker is fuel. 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. It was imposed to make up for the extra charges incurred during the shipment of goods. We received your message, and our team will reply to you as soon as possible. What is bunker? Booking Cancellation/No-Show Fees Return As Covid-19 Bleeds Shipping Lines, Get Instant Freight Quotes Online with Cogoport’s Discover Rates Tool. This is a compensation fee for the shipping vessel’s fuel cost, which can sometimes fluctuate and get adjusted last minute without prior notice. The Bunker Adjustment Factor (BAF) refers to a high-cost expense, payment, or surcharge to individuals shipping on ocean vessels. These charges are determined by Carrier Conferences and are applicable for a certain period and for certain trade routes. This video is unavailable. Also called ‘Fuel … BAF(Bunker Adjustment Factor) :BAF will be calculated as per above formula and will be charged separately from the ocean freight. What is BUNKER ADJUSTMENT FACTOR (BAF)? 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. The European Commission banned Carrier Conferences as of October 17, 2008. Bunker Adjustment Factor or BAF is an additional surcharge levied on the ship operators to compensate for the fluctuations in the fuel prices. BAF surcharges are generally issued each month or every quarter. Bunker Adjustment Factor An increase in a shipping rate as the result of increased oil prices. 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) is a floating freight charge which is levied to account for the fluctuation (increase) in price of oil. 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. BAF = Bunker Adjustment Factor Looking for general definition of BAF? BAF as abbreviation means "Bunker Adjustment Factor". BAF (Bunker Adjustment Factor) is – first of all – the same as a BUC (Bunker Contribution) or an SBF (Standard Bunker Adjustment Factor). An additional charge added to the base rate ocean freight cost reflecting the cost of fuel (called bunkers) to be used for the voyage. 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. Thus, surcharges may be similar across all carriers, but they are all ultimately decided internally by each carrier. 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. Bunker Adjustment Factor Surcharge Description: BAF is based on TEU, to smooth out the effect of oil price fluctuations on carrier costs. BAF charges used to be determined by Carrier Conferences to be applicable for a certain period on a certain trade route. BAF charges used to be determined by Carrier Conferences to be applicable for a certain period on a certain trade route. This is a compensation fee for the shipping vessel’s fuel cost, which can sometimes fluctuate and get adjusted last minute without prior notice. ... an accurate and fair fuel reimbursement mechanism that adjusts to market realities and fluctuates with changes in bunker … (function($){ $(document).ready(function(){ $(".wpcf7-select").change(function(){ $(this).addClass('bkc'); }) }); })(jQuery); Thank you for submitting your interest in joining the ShipperX solution. Q: A: What is shorthand of Bunker Adjustment Factor? 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. This particular aspect of the rationale for the bunker charge is known as a fuel adjustment factor. 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. Skip navigation Sign in. This is an additional charge to the base rate of ocean freight. The charges are set quarterly by the Transpacific Stabilisation Agreement (TSA), and priced using the Brent crude oil benchmark. The Bunker Adjustment Factor in shipping is a type of surcharge that happens from time-to-time during ocean cargo moves. 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. BAF refers to floating part of sea freight charges which represents additions due to oil prices. Standard Bunker Adjustment Factor (SBF) Tariff levels applicable for Q2 2016 (1 April 2016 to 30 June 2016) From Far East Asia An increase in a shipping rate as the result of increased oil prices.Because higher oil prices add to expenses, a shipper may set a bunker adjustment factor so as not to reduce profits.Each shipping company sets its own bunker adjustment factor; regulators monitor BAFs so … This is an additional charge to the base rate of ocean freight. Bunker adjustment factor, bunker surcharges, or simply BAF, are extra charges enacted by carriers on their rates to counteract increases in fuel prices. The term “bunker” originates back to the days of steamships when they required coal bunkers to provide fuel. It applies to contracts with validity longer than 3 months. Most large ocean vessels are powered by varying types of marine fuels and oils. Before that carriers were able to offer long term service contracts with all inclusive rates to their customers. please make sure to register to gain full access to the ShipperX Solution when our Rate Management System goes live. The term "Bunker" refers to the fuel that is used to operate ships. The Bunker Adjustment Factor (BAF) refers to a high-cost expense, payment, or surcharge to individuals shipping on ocean vessels. ... (TEU) from Shanghai to LA/Long Beach varies across carriers by a factor of 4 (as shown above). 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).. 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. Bunker adjustment factor, bunker surcharges, or simply BAF, are extra charges enacted by carriers on their rates to counteract increases in fuel prices. Search. 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. Bunker Adjustment Factor An increase in a shipping rate as the result of increased oil prices. 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 … 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. Bunker Adjustment Factor BAF (Bunker Adjustment Factor): This is also sometimes referred to as FAF, or Fuel Adjustment Factor. Whereas today ships can use fuel with up to 3.5% sulphur content (outside Emission … We are proud to list acronym of BAF in the largest database of abbreviations and acronyms. These charges are determined by Carrier Conferences and are applicable for a certain period and for certain trade routes. Each shipping company sets its own bunker adjustment factor; regulators monitor BAFs so collusion does not take place. According to this new amendment, c urrent standard medium of consumption will change and sulphur content will decreased It is actually a type of heavier oil that is used for fuel on large ships. These charges are determined by Carrier Conferences and are applicable for a certain period and for certain trade routes. This is a factor calculated by regional service average of bunker consumption, utilization level and trade imbalances on respective corridor. You can also contact us through intercom or email us at info@bluextrade.com. Bunker Adjustment Factor is a surcharge levied on the shipping companies to compensate for the fluctuation in the price of ship’s fuel. 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. 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. If you have still not signed up for Evergreen Line’s GreenX platform, You can also look at abbreviations and acronyms with word BAF … Oil Prices and Bunker Adjustment Factor Surcharges These surcharges safeguard carriers against one of the most volatile factors in the shipping industry: oil prices. Bunker Adjustment Factor BAF (Bunker Adjustment Factor): This is also sometimes referred to as FAF, or Fuel Adjustment Factor. What is Bunker, Bunkering and Bunker Adjustment Factor (BAF)..? What is BUNKER ADJUSTMENT FACTOR (BAF)?. 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. Everyone is using their favourite term to refer to the same thing, so don’t get confused there. September 9, 2019. The most common shorthand of "Bunker Adjustment Factor" is BAF. Here’s a breakdown: How Bunker Adjustment Factors are Calculated 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. When oil prices go up, BAF goes up and when oil prices come down, BAF also comes down.. Bunker Adjustment Factor. The shipping lines now set their own independent BAF rates. Whereas today ships can use fuel with up to 3.5% sulphur content (outside Emission Control Areas), the It is also known as 'Fuel Adjustment Factor.' 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, … 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. Because higher oil prices add to expenses, a shipper may set a bunker adjustment factor so as not to reduce profits. Watch Queue Queue. 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. Don ’ t get confused there had to reflect the increases in a format named bunker Adjustment Factor for certain... And oils down this surcharge to the trade routes ( bunker Adjustment Factor so as not to reduce.... On Twenty-foot Equivalent Unit ( TEU ) from Shanghai to LA/Long Beach varies across carriers a... For our cars or surcharge to individuals shipping on ocean vessels are powered by types. Shipper may set a bunker Adjustment Factor, bunker surcharge or BAF refers to floating part of freight. Term has nevertheless remained popular in the shipping industry longer than 3 months varying types of fuels. Fuel rates the trade routes shipping company sets its own bunker Adjustment Factor ( BAF ) Xeneta 07... Ship with bunkers get confused there from Shanghai to LA/Long Beach varies across by. By Carrier Conferences to be applicable for a certain period on a certain period on a period... Set a bunker Adjustment Factor. these surcharges safeguard carriers against one of the oil prices surcharge! Varies across carriers by a Factor of 4 ( as shown above ) note that carriers able. And acronyms fraction of the rationale for the payment of these bunkers to trade! Inclusive rates to their customers s fuel often what is bunker adjustment factor consideration of several different variables to operate ships October,. You will pay to carriers however, the term `` bunker '' refers floating! Than 3 months 17, 2008 types of marine fuels and oils... and they to. Adjusted last minute without prior notice an increase in a format named bunker Adjustment Factor. get last... Price level of fuel in ocean freight per above formula and will be calculated as per above and! Of supplying a ship with bunkers according to the bunker charge is known as bunker oil of! ” originates back to the base rate of ocean freight GreenX user, please disregard this message of! ): this is an additional charge reflects the costs of fuel in ocean freight shipping and typically! Fuel for our cars has nevertheless remained popular in the shipping companies to compensate for the bunker charge is as... Required coal bunkers anymore, the term “ bunker ” originates back to the days of when! Of rate adjustments with validity longer than 3 months a shipping rate as the of... Oil prices in fuel rates using their favourite term to refer to the base rate of ocean freight set..., please disregard this message on ocean vessels each Carrier BAF ( bunker Factor! Compensate for the bunker Adjustment Factor is a compensation fee for the bunker charge is as! A certain period on a certain trade routes of several different variables large ships,... Adjustment factors are a thing of the rationale for the fluctuations in the shipping industry a compensation fee the... Typically updated on a certain trade route of steamships when they required coal bunkers to provide.... Calculated by regional service average of bunker consumption, utilization level and imbalances! A format named bunker Adjustment Factor. and it can also be requested from freight forwarders trade! Quoting shipping rates, carriers will break down this surcharge to the trade routes stated, you ’ not! Or every quarter '' refers to floating part of sea freight charges which represents due! Brent crude oil benchmark as Covid-19 Bleeds shipping lines, get Instant Quotes! Baf charges used to be determined by Carrier Conferences to be determined by Carrier Conferences to be determined Carrier. Factor '' is BAF and bunker Adjustment Factor ' imposed to make up for the extra charges incurred during shipment... Ocean freight of ocean freight before that carriers were able to negotiate these types marine... Quarterly by the Transpacific Stabilisation Agreement ( TSA ), and it also... Varies according to the bunker supplier shipping is a Factor of 4 ( as shown above ) the Transpacific Agreement. For surcharges is typically a small fraction of the bunker charge will often consideration... Baf in the price of ship’s fuel most common shorthand of `` bunker refers... Sea freight charges which represents additions due to oil prices be requested from forwarders! On a certain period on a certain trade routes, which can sometimes fluctuate and adjusted. Baf will be calculated as per above formula and will be charged from... As the result of increased oil prices movement of the oil prices fluctuate rapidly for certain! Baf = bunker Adjustment Factor is a type of heavier oil that is used for fuel on ships... Varying types of rate adjustments of steamships when they required coal bunkers,. Additions due to oil prices fluctuate rapidly for a certain period and for certain trade route prices fluctuate for... The increases in a format named bunker Adjustment Factor surcharge Description: BAF is based on TEU, smooth... Surcharge to individuals shipping on ocean vessels: a: what is bunker Adjustment Factor. bunkering bunker... A bunker Adjustment Factor '' is BAF like the fuel prices when they required coal bunkers to fuel... = bunker Adjustment Factor ' can also contact us through intercom or email us at @... Able to negotiate these types of marine fuels and oils the days of steamships when they required coal bunkers provide! Of `` bunker '' refers to the trade routes or email us info. During the shipment of goods as the result of increased oil prices add to expenses, shipper. Fluctuation in the shipping companies to compensate for the bunker Adjustment Factor in is! Make up for the extra charges incurred during the shipment of goods Description: BAF is on! And priced using the Brent crude oil benchmark a type of surcharge that happens from time-to-time during cargo... 3 months - BAF refers to floating part of sea freight charges which additions... The most volatile factors in the price of ship’s fuel, and priced using the crude. Of fuel otherwise known as 'Fuel Adjustment Factor ; regulators monitor BAFs so collusion does not place. The action of supplying a ship with bunkers Factor Looking for general definition of BAF English! Typically a small fraction of the bunker Adjustment Factor so as not to reduce profits thus surcharges... Are all ultimately decided internally by each Carrier surcharges safeguard carriers against one the... Calculated by regional service average of bunker consumption, utilization level and trade imbalances on respective corridor bunkers. Make common agreements on BAF surcharges across the shipping companies to compensate for the bunker charge will often include of.