Bunker Adjustment Factor (BAF)
BAF Levels | |||
| Last Month | This Month | Next Month |
Dry |
| USD105/TEU |
|
Reefer |
| USD130/TEU |
|
How is BAF derived?
The variable components in the BAF formula consist of the following:
Bunker Price Change x 1Trade Specific Constant = BAF
1 Calculated as (bunker consumption x transit time x imbalance factor)
| Vessel Bunker consumption: | the amount of metric tonnes of bunker fuel needed to transport, and for reefer the daily running of a twenty foot equivalent unit each day of the transit |
| Transit Time: | the average number of days of a round trip voyage, divided by two, equals the one way transit time |
| Imbalance factor: | the ratio of headhaul to backhaul, which measures the inequality between imports and exports in each trade |
| Bunker price change: | the change in bunker price during the measurement period. The price change is the new price less the original price, (the base bunker cost is included in the base ocean freight rate). |
| BAF | BAF levels are rounded to the nearest USD5/20'or USD10/40' |
| Future bunker price | Bunker price for calculating future BAF level |
