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Bunker Adjustment Factor (BAF)

BAF surcharge on base freight when bunker price moves above a trigger - liner trades and contract affreightments.

CharteringBunker
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Formula, assumptions, and limits

BAF=max(0,PcurrentPtrigger)F\text{BAF} = \max(0, P_\text{current} - P_\text{trigger}) \cdot F
SymbolMeaningUnit
Pcurrent,PtriggerP_\text{current}, P_\text{trigger}Current and trigger bunker pricesUSD/t
FFVoyage fuel consumptiont

Source: BIMCO - BUNKER CLAUSE 2022

In short

BAF surcharge on base freight when bunker price moves above a trigger - liner trades and contract affreightments.

Learn the theory Baltic Dry Index and Freight Indices