All transactions are subject to Flexport’s standard terms and conditions, available at www.flexport.com/terms 沪ICP备16041494号. Low sulphur surcharges originate from an International Maritime Organization (IMO) initiative to reduce the amount of sulfuric fuel emissions burned by ocean vessels. Oil prices fluctuate rapidly for a number of reasons everything from the weather to politics can influence the price of oil. Bunker adjustment factor or BAF refers to floating part of sea freight charges which represents additions due to oil prices. Update on Bunker Adjustment Factor (BAF) As previously communicated, our revised Bunker Adjustment Factor (BAF) is designed to adjust contract rates within the duration of a contract, based on fluctuations in fuel-related costs. (**) The New Bunker Factor replaces all existing bunker charges, except bunker charges related to specific emission control areas (ECAs) as defined by IMO, EU, or other Governmental authorities. What does BAF stand for in Factor? Thus, the Bunker Adjustment Factor is calculated based on each TEU aboard a vessel, and the surcharge for increased oil prices is charged to each shipper equally. Please note that Bunker Adjustment Factor is not the only meaning of BAF. Q: A: What is BAF abbreviation? The Bunker Adjustment Factor (SBF) is a charge to account for the fluctuations in bunker costs (oil used by the vessels) that changes on quarterly basis. Here’s a breakdown: Ocean vessels use a lot of oil to operate, meaning most of their expenses are highly dependent on the market price of oil. The BAF charge isn’t usually that big of a deal, but it can be confusing if you are encountering it on your freight invoice for the first time, so we want to quickly clear that up for you. BAF stands for Bunker Adjustment Factor (freight fuel surcharge). Marine Gas Oil Bunker Adjustment Factor. The Definition of BAF is given above so check it out related information. Cabotage - Shipments between ports of the same nation. More specifically, the BAF is a surcharge put on shippers with cargo aboard a vessel to keep an ocean carrier’s oil expenses in check. To go to bed: bunked down early. This page is all about the acronym of BAF and its meanings as Bunker Adjustment Factor. Terms of sale. New Bunker Adjustment Factor (BAF) Dear customer, From 1st January 2020, a new regulation will come into force to reduce air pollution from ships globally. What does BAF stand for? __ss_noform.push(['baseURI', 'https://app-3QNHWHFHF6.marketingautomation.services/webforms/receivePostback/MzawMDE3tjAwBgA/']); That may sound unfair, but if you’ve encountered a Bunker Adjustment Factor charge on your freight invoice, you’ve probably noticed it’s a relatively small number. What is the abbreviation for Bunker Adjustment Factor? U.S. trucking services are provided by Flexport International, LLC, a FMCSA licensed property broker USDOT #2594279 and MC #906604-B. Bunkers - Fuel used by vessel. New rules on 1 January 2015. This keeps ocean carriers capable of maintaining their margins without drastic charges on shippers using their vessels. by AcronymAndSlang.com abbreviation stands for Bunker Adjustment Factor. Looking for the definition of BAF? Low sulphur surcharges originate from an International Maritime Organization (IMO) initiative to reduce the amount of sulfuric fuel emissions burned by ocean vessels. BAF as abbreviation means "Bunker Adjustment Factor". International ocean freight forwarding services are provided by Flexport International LLC, a licensed Ocean Transportation Intermediary FMC# 025219NF. Save my name, email, and website in this browser for the next time I comment. Said differently – you aren’t going to “avoid” BAF charges by working with one ocean carrier over another. All Acronyms. What is the meaning of BAF? Till now you might have got some idea about the acronym, abbreviation or meaning of BAF Meanings of BAF in English As mentioned above, BAF is used as an acronym in text messages to represent Bunker Adjustment Factor. They are the ones directly affected by oil price increases, so these surcharges are issued by the ocean carrier to mitigate their own expenses. A bunker surcharge, also known as bunker adjustment factor (BAF), is the charge shipper’s incur to compensate for fluctuating fuel prices and is typically in addition to other surcharges and fees added to the freight costs.Some of those surcharges include: A peak season surcharge (PSS) is the fee that is applied when transporting cargo from Asia, typically anytime between June 1 and … BUNKER ADJUSTMENT FACTOR: Fuel prices are subject to major price fluctuations. Our newsletter provides great resources, industry trends, and solutions. B.A.F. 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