Bunker Adjustment Factor

The Bunker Adjustment Factor (BAF) is a fee added to shipping costs to account for fluctuations in fuel prices, specifically bunker fuel used by ships. As fuel prices change, this adjustment helps shipping companies cover their costs without adjusting base freight rates constantly. BAF is calculated based on the current price of fuel and can vary by shipping route and industry conditions. It ensures that shipping remains financially viable, reflecting the impact of fuel costs on overall shipping expenses without burdening customers with unpredictable price changes.