Bunker adjustment factor or BAF refers to 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.

The European Commission 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.

The recent fluctuations in oil price (2008) means that the BAF rates are now coming down, but there are some wide variations in application.

[edit] See also

• Surcharge

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