Glossary
BAF (Bunker Adjustment Factor)
Tags: Glossary
BAF accounts for vessel fuel and fluctuates based on the price of Brent oil
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What is BAF?
BAF (Bunker Adjustment Factor) is a surcharge that accounts for vessel fuel cost, set quarterly by the Transpacific Stabilization Agreement (TSA). The BAF is tied to the price of oil, set by Brent crude oil price, a major benchmark for worldwide oil prices.
The BAF is charged by ocean carriers per container to protect them against fuel price fluctuation, and varies among trade lanes.
Flexport’s freight rates are inclusive of the BAF.
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What’s the Relationship Between Vessel Fuel and Crude Oil?
Why Do Freight Costs Vary per Trade Lane?
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