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BAF (Bunker Adjustment Factor)

What is BAF?

BAF represents the floating price level of fuel in ocean freight shipping and is typically updated on a quarterly basis. Low sulphur surcharges originate from an International Maritime Organization (IMO) initiative to reduce the amount of sulfuric fuel emissions burned by ocean vessels.

The BAF is charged by ocean carriers per container to protect them against fuel price fluctuation, and varies among trade lanes. 

Flexport’s freight rates are inclusive of the BAF.