Pricing & Surcharges
BAF (Bunker Adjustment Factor)
A fuel surcharge applied to ocean freight rates to reflect changes in bunker (fuel) costs. Fluctuates with oil prices and is added to base ocean freight.
In depth
BAF is a surcharge that carriers apply on top of the base ocean freight rate to recover changes in the cost of bunker fuel. It exists because fuel is a large and volatile share of vessel operating cost, and carriers prefer to isolate it rather than reprice the base rate constantly. BAF is usually quoted per container or per freight tonne and is revised periodically, often quarterly, by trade lane. Similar mechanisms appear under other names — LSS or low sulphur surcharge, EBS or emergency bunker surcharge — introduced in some cases after the IMO 2020 sulphur cap raised compliant fuel costs. When comparing quotes, confirm whether BAF is included in the rate or added separately.
Key points
- Recovers bunker fuel cost movements outside the base rate
- Quoted per container or per freight tonne, revised by trade lane
- Related surcharges include LSS and EBS
- Always confirm whether a quote is all-in or BAF-exclusive