The term "Bunker" refers to the fuel used to operate ships. Bunkering is the action of supplying a ship with bunkers. The ship operator is responsible for paying these bunkers to the bunker supplier.
As fuel prices are volatile, the shipping lines charge a "Bunker Adjustment Factor (BAF)" fee to cover the fluctuations in global bunker costs.
This BAF is charged either as a separate or included in the freight charge, depending on the trade route.
Terminal Handling Charges (THC) Explained
The Anatomy Of The Sea Freight Invoice
Oil Prices And The Effect On Shipping Rates
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