Bunker Adjustment Factor

GLOSSARY

BAF (Bunker Adjustment Factor)

Bunker Adjustment Factor or BAF is an additional surcharge levied on the ship operators to compensate for the fluctuations in the fuel prices. It was imposed to make up for the extra charges incurred during the shipment of goods. BAF is based on Twenty-foot Equivalent Unit (TEU) and varies according to the trade routes.

What is BAF(Bunker Adjustment Factor)?

Bunker Adjustment Factor or BAF is an additional surcharge levied on the ship operators to compensate for the fluctuations in the fuel prices. It was imposed to make up for the extra charges incurred during the shipment of goods. BAF is based on Twenty-foot Equivalent Unit (TEU) and varies according to the trade routes. Formerly, BAF used to be standardized by the Transpacific Stabilization Agreement (TSA) using the Brent crude oil as a basis. But, in 2018, TSA was disbanded following the resignation of its key member, Maersk Line. Subsequently, the shipping operators started to set their bunker surcharge independently – monitored by the European Commission.

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