The Bunker Adjustment Factor (BAF) is a fuel surcharge added to ocean freight shipping rates to offset fluctuations in marine fuel prices. Ocean carriers apply BAF on a per-container basis to stabilize shipping costs as fuel prices rise or fall. This surcharge allows carriers to manage fuel price volatility without frequently adjusting base freight rates.
- Based on average global fuel prices, BAF rates are reviewed and adjusted quarterly.
- Charges vary by trade lane, reflecting regional fuel costs and distances traveled.
- BAF may also include Low Sulphur Fuel Surcharges (LSF or LSS), introduced under IMO 2020 regulations to reduce sulfur emissions from ships.
