GlossaryEN1 min readUpdated: Jun 18, 2026
Energy Surcharge Shipping Company
When bunker prices rise, carriers add an energy surcharge – commonly known as a Bunker Adjustment Factor (BAF) or Fuel Surcharge – on top of the agreed freight rate.
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When bunker prices rise, carriers add an energy surcharge – commonly known as a Bunker Adjustment Factor (BAF) or Fuel Surcharge – on top of the agreed freight rate. The charge is calculated per container or per tonne of cargo and typically reviewed monthly in line with global oil markets. Unlike fixed freight components, it is a variable fee set unilaterally by the shipping line and can be reduced or withdrawn when fuel costs fall. For shippers and freight forwarders, the BAF is a significant cost variable that should always be listed separately in rate quotations and clearly defined in service contracts. Following the IMO 2020 sulphur regulations, many carriers introduced an additional Low-Sulphur Surcharge (LSS) that operates on the same principle.
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