WebMar 16, 2024 · CMA CGM will implement a Bunker Recovery Adjustment Factor (BRAF) as from April 1st, 2024. The Bunker Recovery Adjustment Factor is applicable on monthly basis for the short term contracts only (excluding any contract subject to quarterly floating BAF mechanism) to reflect the significant increase in the bunker rates. WebFeb 13, 2024 · BAF is based on Twenty-foot Equivalent Unit (TEU) and varies according to the trade routes. Also called ‘Fuel Adjustment Factor’ or ‘Bunker Surcharge’, BAF represents the floating part of sea freight …
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WebBunker adjustment factor, bunker surcharge or BAF refers to the floating part of sea freight charges which represents additions due to oil prices. [1] 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. WebHowever, floating BAF may be disadvantageous for a customer as significant variations may mean that their product price could increase, making them uncompetitive in the market. As a kind of a “compromise,” … WebFeb 17, 2024 · The ‘ fixed BAF ’, the ‘ floating BAF ’ and the ‘ locked-in BAF ’ are the types of BAF in ocean freight, that all come with their special features for cost management. A fixed BAF is a certain fee that has to be paid for the bunker, no matter how the oil prices develop in the meanwhile. family services manager salary