Nautical Term: BAF
Definition of BAF
Bunker Adjustment Factor (BAF): This term represents a fuel surcharge expressed as a percentage. The BAF is added or subtracted from the freight amount, reflecting the movement in the market place price for bunkers. For instance, if a shipping company agrees to transport goods from Asia to Europe for $10,000 in freight, and the current bunker price causes a BAF of 30%, the final freight amount payable by the importer would be $13,000.
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