BAF

"BAF" stands for "Bunker Adjustment Factor." It is a surcharge applied to sea freight charges to account for fluctuations in fuel costs. BAF is a cost adjustment factor that reflects changes in the price of bunker fuel used by the shipping vessels. In essence, BAF is a mechanism in maritime contracts to adjust freight charges based on the volatility of fuel prices. This helps ensure that shipping companies can manage the unpredictability of fuel prices without having to frequently modify the base freight rates in contracts.