Bunker adjustment factor (BAF)
The bunker adjustment factor (BAF) is a surcharge applied by shipping lines to compensate for fluctuations in fuel prices. This charge helps carriers manage the impact of fuel cost volatility on their operations, ensuring financial stability and continuity of service.
Related glossary terms
Fuel Surcharge (FSC)
Fuel Surcharge (FSC) is an extra fee added to base freight charges to offset carrier fuel price fluctuations, calculated as a percentage of freight cost or…
Slow Steaming
Slow Steaming is the practice of operating cargo ships at reduced speed to save fuel, cut emissions, and lower operating costs, at the expense of longer…
Ocean Freight
Ocean Freight refers to transporting goods by sea using container ships or bulk carriers, the dominant mode of international trade due to its large-volume…
All inclusive rate (AI)
An all-inclusive rate (AI) bundles freight, fuel surcharges, and handling fees into one charge. Learn what is covered and how to compare quotes accurately.
