Bunker Adjustment Factor (BAF)
BAF surcharge on base freight when bunker price moves above a trigger - liner trades and contract affreightments.
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Formula, assumptions, and limits
| Symbol | Meaning | Unit |
|---|---|---|
| Current and trigger bunker prices | USD/t | |
| Voyage fuel consumption | t |
Source: BIMCO - BUNKER CLAUSE 2022
In short
BAF surcharge on base freight when bunker price moves above a trigger - liner trades and contract affreightments.