GlossaryEN1 min readUpdated: Jun 26, 2026
Bunker Adjustment Factor (BAF)
The Bunker Adjustment Factor (BAF) is a variable surcharge that shipping lines apply to ocean freight rates to pass on fluctuations in bunker fuel costs to shippers.
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Source: https://www.investopedia.com/terms/b/bunker-adjustment-factor-baf.asp
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Definition & Explanation
The Bunker Adjustment Factor (BAF) is a variable surcharge that shipping lines apply to ocean freight rates to pass on fluctuations in bunker fuel costs to shippers. It is typically recalculated monthly or quarterly using recognized bunker price indices and expressed either as a flat amount per container or as a percentage of the base freight rate. Freight forwarders must itemize BAF separately in quotations and factor its volatility into longer-term contract pricing. BAF covers fuel costs exclusively and should not be confused with the Currency Adjustment Factor (CAF), which addresses exchange rate movements rather than energy prices.
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