A bunker adjustment factor, or BAF, is a surcharge ocean carriers add to the base freight rate to cover the changing cost of fuel, known in shipping as bunker. Fuel is a large and volatile part of a carrier’s cost, so the BAF rises and falls with fuel prices and with rules such as the low-sulfur fuel requirement. The charge appears as a separate line on the freight bill rather than being folded into the base rate.
The BAF is one of several surcharges that sit on top of the base ocean rate, so it belongs in any full landed-cost estimate. Texas International Freight breaks out the surcharges on your ocean freight so the shipping cost is clear up front.
