Example: Freight rate: Port Elizabeth to Singapore Freight rate: US Dollar: 1 … New Bunker Adjustment Factor . Charge for the use of fuel that has lower emissions. The other relevant parameters form an input into the calculation of the price list. BAF represents the floating price level of fuel in ocean freight shipping and is typically updated on a quarterly basis. We use Bunkerworld’s fuel price index 0.5% Sulphur fuel oil … Low sulphur surcharges originate from an International Maritime Organization (IMO) initiative to reduce the amount of sulfuric fuel emissions burned by ocean vessels. Bunker Adjustment Factor (BAF) This charge is used to compensate steamships for the ever-fluctuating fuel costs. BAF (Bunker Adjustment Factor, or fuel surcharge) charges are configured and added onto the base rate you pay for ocean freight once bunker fuel levels exceed a certain amount for that quarter. This can also be referred to as “Fuel Adjustment Factor” or FAF. But in actual scenario it's impossible to weigh the fuel oil physically . The rate is similar … The result is the "Bunker Adjustment Factor" (BAF) or bunker charge. Contargo has therefore decided to include the factors of. One major emerging challenge is the long-standing inconsistency in BAF practices. 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 … Maersk's new BAF formula. Maersk's new BAF formula BY PETER T. LEACH | Jan 27, 2008 7:00PM EST. Below are some of the main factors contributing to the overall ocean freight rates. NILEDUTCH BUNKER ADJUSTMENT FACTOR Formula for NileDutch New Bunker Adjustment Factor (NBF) www.niledutch.com IMO 2020 REGULATION FOR LOW SULPHUR FUEL The International Maritime Organization (IMO) requires that from 1 January 2020, Sulphur content in the fuel used for international shipping must be limited globally to 0.5%, compared with the Bunker Adjustment Factors Are a Thing of the Past. Accordingly, Maersk will apply the additional monthly trigger defined in our Bunker Adjustment Factor (BAF) and Environmental Fuel Fee (EFF) formulas and the new tariffs will be effective 1 March 2020. Ever since fuel prices started going through the roof last year, container shipping companies have c. September 9, 2019. Bunker Adjustment Factor Tips: Smaller charges like this can add confusion, so smaller customers usually receive or should ask for, an all-inclusive port to port charge. BAF charges are additional / on-on-top-of the base rates you will pay to carriers. Bunker quantity is always said in Metric Ton (MT) because volume of oil changes according to the temperature , so it is always preferable to take bunker in weight which does not get changed with the change in temperature. Share: The changing landscape of the maritime shipping industry highlighted the distortions and inefficiencies in shippers’ existing marine fuel practices. The BAF rate is a non-negotiable pass-through charge. so we convert weight in to volume (m3). Bunker Adjustment Factor (BAF) "Bunkers" is the generic name given to fuels and lubricants that provide energy to power ships. AKA Bunker Surcharge. JOC Maritime News International Freight Shipping. According to this new amendment, c urrent standard medium of consumption will change and sulphur content will decreased fuel price; distance and; size and weight of the container; In the individual calculation of the fuel surcharge. 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