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Bunker Adjustment Factor Surcharge (BAF)

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.

Related articles:

Terminal Handling Charges (THC) Explained

The Anatomy Of The Sea Freight Invoice

Oil Prices And The Effect On Shipping Rates

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