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Meaning of BAF Customs Shipping International Shipments

BAF is part of the cost of shipping international goods overseas.  BAF stands for "Bunker Adjustment Factor"

I was interested in the meaning of this term because of my work. I Purchase international transportation services and while dealing with our customs agent he said that the " BAF would be included in the cost. "   I had no idea what BAF means  and inquired what this facet of shipping was all about.

It turns out that the Bunker Adjustment factor is a charge that is used to pay steamship lines for volatile fuel costs.  The cost of fuel changes all the time and BAF helps to cover the ship line by paying them for fluctuations.

Beyond that, I do not know much else about BAF.  If you are working with an international customs agent / broker, do check with these transportation professionals to see how BAF applies to you or your company.  I admit, I am not a source of expertise on this subject but I do hope that gives you a general idea as to what this term means.

If you get a chance, please read some of my other TurtleDog posts

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