Bunker Adjustment Factor (BAF)

BAF Charge An adjustment in shipping charges or an additional charge added to the ocean freight to offset price fluctuations in the cost of bunker fuel. Fluctuations in oil prices will alter rates depending on any of a wide variation in applications. BAF has derived from the term bunker (fuel storage containers). Such surcharge is added up on the ocean freight by shipping companies to supplement fuel factor costs and termed as BAF.


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