BAF
Bunker Adjustment Factor
BAF is a surcharge on sea freight that covers changes in the price of ship fuel (called bunker).
In plain words
Fuel is one of the biggest costs of running a ship, and its price goes up and down. Instead of changing the base freight rate all the time, shipping lines add the BAF and update it regularly, often every month or every quarter.
The BAF may also include the extra cost of cleaner, low-sulphur fuel; some lines show this as a separate charge. When you compare quotes, check whether the BAF is included, and for which period the quoted BAF is valid.
Example from real shipping
A forwarder quotes a base rate plus BAF for a container from Asia to Turkey, valid for October. The shipment sails in November, after fuel prices have risen. The line's November BAF is higher, so the final invoice is a little higher than the October quote.
Related terms
- CAFCAF is a surcharge on freight that protects the carrier against changes in exchange rates.
- THCTHC is a charge for handling a container at the port terminal, for example lifting it on or off the ship and moving it in the yard.
- Landed costLanded cost is the total cost of getting a product to your door: the price of the goods plus freight, insurance, duties, taxes, and all other fees on the way.
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Request a QuoteThis glossary is general information, not legal or customs advice. Rules, fees, and practice can differ by carrier, port, and country.