BAF (Bunker Adjustment Factor)

What is BAF?

BAF represents the floating price level of fuel in ocean freight shipping and is typically updated on a quarterly basis. Low sulphur surcharges originate from an International Maritime Organization (IMO) initiative to reduce the amount of sulfuric fuel emissions burned by ocean vessels.

The BAF is charged by ocean carriers per container to protect them against fuel price fluctuation, and varies among trade lanes.

How does BAF show up in your costs?

Ocean carriers apply BAF as a per-container charge on top of the base ocean rate. Carriers update the amount on a set schedule, often quarterly, and it varies by trade lane because vessels burn different amounts of fuel on different routes. A rise in fuel prices can raise your total cost even when the base rate stays flat.

Some quotes bundle BAF into an all-in rate, while others list it as a separate line. Ask which approach your quote uses so you can compare offers fairly.

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