Bunker Surcharge, also Bunker Adjustment Factor (BAF)

Bunker refers to fuel used by vessels, planes and other conveyances. Carriers may typically charge a Bunker Surcharge over and above standard freight rates, in order to compensate for frequent fluctuations in the cost of fuel as an alternative to constantly adjusting freight rates. Surcharges may be in the form of a percentage of the freight cost, or a fixed amount per freight unit.

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