Logistics Terms
What Is the Bunker Adjustment Factor (BAF)?
3 min read
The Bunker Adjustment Factor (BAF) is a surcharge applied by ocean carriers to reflect fluctuations in the price of bunker fuel, the fuel used to power ships. It keeps freight pricing aligned with changing fuel costs.
Why BAF exists
Fuel is one of the largest operating costs for a shipping line, and its price changes constantly. Rather than rewriting base freight rates every time fuel moves, carriers apply a separate BAF surcharge that rises and falls with fuel prices.
BAF and other surcharges
BAF sits alongside other surcharges such as the Currency Adjustment Factor (CAF) and peak-season surcharges. Ask your forwarder for an all-in rate so you can compare quotes on a like-for-like basis.