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BAF is short for Bunker Adjustment Factor. It is a surcharge added to the freight rates charged by shipping lines and companies and aims at covering the fluctuations in the cost of the fuel (bunker) used by ships.

The cost of bunker fuel, the fuel used by ships, is highly volatile and varies in function of the global oil prices, the current supply and demand and possibly in function of other geopolitical or supply chain related events. The BAF surcharge is used by the shipping operators to cover these fluctuations and ensure they maintain their profitably regardless of the fuel price variations. The BAF, typically a percentage of the freight rate, will increase or decrease in parallel to the increases or decreases of the bunker fuel price.

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