Glossary

Bunker Adjustment Factor (BAF)

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Bunker Adjustement Factor (BAF) is a type of fuel surcharge in ocean transport and charged by container. BAF is linked to the oil price (Brent crude oil price) and set quarterly by the Transpacific Stabilization Agreement (TSA). The BAF is charged by ocean carriers to protect them against fuel price fluctuations. BAF varies from lane to lane.