What is BAF (bunker adjustment factor)?
Fuel is one of a carrier's largest operating costs, so rather than change base rates whenever oil prices move, lines publish a separate BAF for each trade lane. It is charged per container, or per revenue ton for LCL, and recalculated at regular intervals, often monthly or quarterly, from an average fuel price over a reference period. Some carriers call it a bunker surcharge or fuel adjustment factor.
BAF tracks fuel only. A general rate increase raises the base rate itself, and a currency adjustment factor (CAF) offsets exchange-rate moves. Carriers have also added related charges, such as low-sulfur fuel surcharges introduced around the IMO 2020 sulfur limit and emissions surcharges on some trades. Air freight has its own fuel surcharge per kilogram, and road carriers use diesel clauses.
When quoting, state whether BAF is included or charged separately at the level in force when the cargo ships. Many tariffs apply the BAF valid on the loading or sailing date rather than the quote date, so a quote valid for a month can straddle a BAF change. Matching quote validity to the carrier's BAF period avoids an awkward extra charge after the customer has accepted.