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Glossary BAF (Bunker Adjustment Factor)

Bunker Adjustment Factor(BAF) refers to the surcharge applied to the freight per tonne for the increase in operating costs caused by an increase in fuel prices. It is the difference in cost that is passed on to the cargo per tonne when shipping between regions where it is inevitable to use bunker oil at a price above a certain level or above the usual price or the cost of fuel reaches abnormal level.
Source : National Logistics Information Center of Korea