Bunker adjustment factor: a fuel surcharge added to sea freight.
Shipping lines add BAF to cover changes in the price of ship fuel (bunker). It changes monthly or quarterly and can be a large part of the total freight.
Related terms
- All-in rate — A freight price that already includes surcharges such as BAF and CAF.
- CAF — Currency adjustment factor: a surcharge covering exchange-rate changes.
- Ocean freight — The charge for carrying a container or cargo by sea from port to port.