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Bunker Adjustment Factor | Freight-Academy™

BAF

GlossaryEN1 min readUpdated: Jun 26, 2026

Bunker Adjustment Factor

When bunker costs rise sharply, shippers see the impact on their freight invoice through the Bunker Adjustment Factor (BAF)—a variable surcharge that carriers apply to recover fuel cost volatility from their customers.

Quick Answer

When bunker costs rise sharply, shippers see the impact on their freight invoice through the Bunker Adjustment Factor (BAF)—a variable surcharge that carriers apply to recover fuel cost volatility…

It is calculated either as a flat amount per TEU or per freight ton, or as a percentage on top of the base ocean freight rate, and is revised monthly or quarterly against published bunker indices…

BAF levels differ considerably by trade lane and vessel size: deep-sea services with large fuel consumption typically carry higher charges than short-sea or feeder routes.

Last updated: 26 June 2026Published: 27 January 2026

Source: https://en.wikipedia.org/wiki/Bunker_(fuel)#Bunker_surcharge

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Bunker Adjustment Factor

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Definition & Explanation

When bunker costs rise sharply, shippers see the impact on their freight invoice through the Bunker Adjustment Factor (BAF)—a variable surcharge that carriers apply to recover fuel cost volatility from their customers. It is calculated either as a flat amount per TEU or per freight ton, or as a percentage on top of the base ocean freight rate, and is revised monthly or quarterly against published bunker indices such as those from S&P Global Commodity Insights (Platts) or MOPS. BAF levels differ considerably by trade lane and vessel size: deep-sea services with large fuel consumption typically carry higher charges than short-sea or feeder routes. Shippers comparing carrier quotes should always evaluate the BAF separately, as it can materially exceed the base rate on long-haul trades. The BAF is distinct from the Emergency Bunker Surcharge (EBS), which some carriers levy on top of the standard BAF during sudden, extreme price spikes.

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Recommended format: Source: Freight Academy – Bunker Adjustment Factor (https://www.freight-academy.com/en/glossary/bunker-adjustment-factor-2), accessed 2026-09-12
APA style: Freight Academy Editorial Team. (2026). Bunker Adjustment Factor. Freight Academy. https://www.freight-academy.com/en/glossary/bunker-adjustment-factor-2
BibTeX: @misc{bunkeradjustmentfactor2026, title = {Bunker Adjustment Factor}, author = {{Freight Academy Editorial Team}}, year = {2026}, url = {https://www.freight-academy.com/en/glossary/bunker-adjustment-factor-2}, note = {Freight Academy, accessed 2026-09-12} }

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