Bunker adjustment factor, bunker
surcharge or BAF refers to the floating part of
sea freight charges which represents additions due to
oil prices.
BAF charges used to be determined by Carrier Conferences to be applicable for a certain period on a certain
trade route
A trade route is a logistical network identified as a series of pathways and stoppages used for the commercial transport of cargo. The term can also be used to refer to trade over bodies of water. Allowing goods to reach distant markets, a sing ...
.
The
European Commission
The European Commission (EC) is the executive of the European Union (EU). It operates as a cabinet government, with 27 members of the Commission (informally known as "Commissioners") headed by a President. It includes an administrative body ...
banned Carrier Conferences as of October 17, 2008. The shipping lines now set their own independent BAF rates. They will be closely monitored by the EC to ensure that no collusion is taking place.
Fluctuations in oil prices will alter rates depending on any of a wide variation in applications...
References
International trade
{{International-trade-stub