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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