Bunker Adjustment Factor (BAF) | Shipping Term Explained | Logistics Glossary

Back to Glossary

GLOSSARY

Bunker Adjustment Factor (BAF)

The Bunker Adjustment Factor (BAF), also known as the bunker surcharge, is charged for any price fluctuations on the ship’s fuel.

SHIP NOW

Book your delivery

Check the price

What does Bunker Adjustment Factor (BAF) mean in shipping terms?

If the fuel price increases, the ship operators will also modify the shipping price, meaning the fluctuation difference will be additionally charged. These prices are relatively volatile, and the operators will have to compensate somehow to avoid loss. Furthermore, the costs are taken as average from all the ports worldwide. The Trade Factor represents the average fuel consumption for a specific trade and considers the fuel efficiency, trade imbalance and the expected transit time. This surcharge is calculated according to the following:

Fuel price x Trade Factor = BAF

ARE YOU A BUSINESS?

Digitalise your logistics processes

Join our platform to get immediate access to discounted shipping prices and assistance from our dedicated logistics experts during any step of the booking process, before or during transit.
Set up a business account

From (pickup)

To (delivery)

Based on 42,754 reviews