AKA Bunker Surcharge. fuel price; distance and; size and weight of the container; In the individual calculation of the fuel surcharge. Bunker Adjustment Factors Are a Thing of the Past. Bunker Adjustment Factor (BAF) This charge is used to compensate steamships for the ever-fluctuating fuel costs. The rate is similar … Bunker Adjustment Factor Tips: Smaller charges like this can add confusion, so smaller customers usually receive or should ask for, an all-inclusive port to port charge. Maersk's new BAF formula. One major emerging challenge is the long-standing inconsistency in BAF practices. Bunker Adjustment Factor (BAF) "Bunkers" is the generic name given to fuels and lubricants that provide energy to power ships. Ever since fuel prices started going through the roof last year, container shipping companies have c. NILEDUTCH BUNKER ADJUSTMENT FACTOR Formula for NileDutch New Bunker Adjustment Factor (NBF) www.niledutch.com IMO 2020 REGULATION FOR LOW SULPHUR FUEL The International Maritime Organization (IMO) requires that from 1 January 2020, Sulphur content in the fuel used for international shipping must be limited globally to 0.5%, compared with the Example: Freight rate: Port Elizabeth to Singapore Freight rate: US Dollar: 1 … Maersk's new BAF formula BY PETER T. LEACH | Jan 27, 2008 7:00PM EST. September 9, 2019. Bunker quantity is always said in Metric Ton (MT) because volume of oil changes according to the temperature , so it is always preferable to take bunker in weight which does not get changed with the change in temperature. A bunker surcharge, also known as bunker adjustment factor (BAF), is the charge shipper’s incur to compensate for fluctuating fuel prices and is typically in addition to other surcharges and fees added to the freight costs.Some of those surcharges include: A peak season surcharge (PSS) is the fee that is applied when transporting cargo from Asia, typically anytime between June 1 and … Charge for the use of fuel that has lower emissions. Accordingly, Maersk will apply the additional monthly trigger defined in our Bunker Adjustment Factor (BAF) and Environmental Fuel Fee (EFF) formulas and the new tariffs will be effective 1 March 2020. According to this new amendment, c urrent standard medium of consumption will change and sulphur content will decreased The BAF rate is a non-negotiable pass-through charge. BAF (Bunker Adjustment Factor, or fuel surcharge) charges are configured and added onto the base rate you pay for ocean freight once bunker fuel levels exceed a certain amount for that quarter. The result is the "Bunker Adjustment Factor" (BAF) or bunker charge. BAF represents the floating price level of fuel in ocean freight shipping and is typically updated on a quarterly basis. As of 1. st. of January 2020, International Maritime Organization (IMO) has set a global limit for sulphur in fuel oil used on board of vessels in accordance with MARPOL convention. BAF charges are additional / on-on-top-of the base rates you will pay to carriers. This can also be referred to as “Fuel Adjustment Factor” or FAF. The cost of bunker oil fluctuates continually and with comparatively little warning. We use Bunkerworld’s fuel price index 0.5% Sulphur fuel oil … Contargo has therefore decided to include the factors of. Low Sulphur Surcharge. New Bunker Adjustment Factor . Share: The changing landscape of the maritime shipping industry highlighted the distortions and inefficiencies in shippers’ existing marine fuel practices. JOC Maritime News International Freight Shipping. The other relevant parameters form an input into the calculation of the price list. Below are some of the main factors contributing to the overall ocean freight rates. Low sulphur surcharges originate from an International Maritime Organization (IMO) initiative to reduce the amount of sulfuric fuel emissions burned by ocean vessels. But in actual scenario it's impossible to weigh the fuel oil physically . so we convert weight in to volume (m3). 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