BAF

Category: Logistics

Also searched as: Bunker Adjustment Factor

Definition (plain English)

Bunker adjustment factor is a fuel-related surcharge added to ocean freight rates.

Why it matters commercially

BAF can change freight cost after the base rate is quoted, especially on longer lanes or volatile fuel periods.

Example

A freight quote looked stable until BAF and low-sulfur surcharges were added to the final booking confirmation.

Common mistake

Comparing forwarder quotes by base rate only and ignoring surcharge basis, validity, and pass-through rules.

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