Glossary term
BAF
Bunker Adjustment Factor: a surcharge that passes changes in marine fuel prices through to the freight rate.
A surcharge applied by ocean carriers to reflect the cost of bunker fuel. It is quoted separately from the base rate so that fuel movements can be passed through without renegotiating the rate itself.
Because it is separate, a headline freight rate can be compared between carriers and still mislead. Compare the total, including BAF and any CAF.