Freight Glossary
BAF (Bunker Adjustment Factor) – Meaning & Examples
A fuel surcharge that adjusts freight rates based on bunker (fuel) price fluctuations.
- Abbreviation
- BAF
- Full term
- Bunker Adjustment Factor
- Related terms
- BAF, fuel surcharge, bunker surcharge
Bunker Adjustment Factor (BAF), also called Fuel Adjustment Factor (FAF) or Emergency Fuel Surcharge (EFS), is a surcharge applied to freight rates to account for fuel price changes. Bunker fuel is a significant cost for shipping lines, and BAF allows carriers to adjust rates without changing the base freight rate. BAF typically increases when oil prices rise and may be quoted per container or per TEU.
Bunker Adjustment Factor examples
- BAF increased to $400 per 40' container due to rising oil prices.
How BAF is used in freight operations
BAF appears in quotations, bookings, shipping documents, and tracking updates. Confirm how it applies to your shipment with your carrier, forwarder, or customs representative, because practice can differ by country and contract.
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Frequently asked questions
What is BAF?
A fuel surcharge that adjusts freight rates based on bunker (fuel) price fluctuations.
What does BAF stand for?
BAF stands for Bunker Adjustment Factor.
What is an example of BAF?
BAF increased to $400 per 40' container due to rising oil prices.