GlossaryEN1 min readUpdated: Jun 9, 2026
Bunker Cost Management Freight
Bunker cost management operates when shipowners and shippers apply fuel surcharges to reflect fluctuations in the global bunker oil market within freight rates.
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Source: https://www.marineinsight.com/marine-glossary/bunker-adjustment-factor-baf/
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Logistics Concept
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Bunker cost management operates when shipowners and shippers apply fuel surcharges to reflect fluctuations in the global bunker oil market within freight rates. This surcharge is imposed as a variable component additional to the base freight rate, allowing rapid adjustment to price volatility without renegotiating the underlying contract. Formulas typically reference established benchmarks (e.g., Platts, IPIECA indices) and are defined in the freight agreement or standard terms. Transparent bunker management mitigates margin risk and strengthens cost predictability for both parties.
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