BAF, or Bunker Adjustment Factor, is an ocean freight surcharge used to adjust shipping costs based on changes in marine fuel prices. Bunker fuel is the fuel used by vessels, and carriers apply BAF to recover fuel cost fluctuations that are not included in the base freight rate. The surcharge may vary by trade lane, carrier, container type, contract, and fuel market conditions. For shippers, BAF is an important part of total ocean freight cost. It is assessed per container on top of the base freight rate and adjusts quarterly or monthly.
BAF vs. Other Fuel Surcharges
- BAF: standard fuel surcharge on most ocean trade lanes
- EBS: additional levy during sharp fuel price spikes
- LSS: covers IMO 2020 low-sulfur fuel compliance costs
BAF is a standard cost of ocean freight and should be included in landed cost calculations. Carriers may also recover canal costs through a Panama transit fee, billed on top of the base ocean rate for vessels routed through the Panama Canal.
Learn more about Dedola’s ocean freight shipping services. Related terms: TEU.
