How is bunker adjustment factor calculated?
The BAF is calculated by multiplying the so-called ‘trade factor’ by the fuel price. The fuel price will be the same for all trades and is calculated as the average bunker price in key supply ports around the world over a period said to be “typically” three months.
How does Bunker Adjustment Factor work?
The Bunker Adjustment Factor (BAF) is an additional charge levied on the shippers to compensate for fluctuations in the price of the ship’s fuel. The trade factor reflects the average fuel consumption on a given trade as a result of variables such as transit time, fuel efficiency and trade imbalance.
What are BAF rates?
Bunker adjustment factor, bunker surcharge or BAF refers to the floating part of sea freight charges which represents additions due to oil prices. BAF charges used to be determined by Carrier Conferences to be applicable for a certain period on a certain trade route.
What is BAF and LSS?
BAF = Bunker Adjustment Factor. LSS = Low Sulphur Fuel Surcharge.
What is PSS in ocean freight?
PSS (Peak Season Surcharge) is a variable surcharge that carriers may apply during times of peak demand.
What is BAF and CAF?
The bunker adjustment factor (CAF) covers the fluctuations in global bunker costs, and is invoiced as a separate charge to provide transparency to our customers. The carrier will automatically apply this charge to all bookings. Moana Shipping latest C.A.F & B.A.F.
What does BAF mean in ocean freight?
Bunker Adjustment Factor
BAF is the abbreviation for Bunker Adjustment Factor. The term “Bunker” refers to the Fuel that is used to operate ships. The ship operator is responsible for the payment of these bunkers to the bunker supplier.
What is peak surcharge?
What are peak season surcharges? Peak Season Surcharges (PSS) refer to temporary surcharges that major shipping carriers will apply to their base rate to cover increased operational costs during periods of high demand.
What is freight Caf?
Currency Adjustment Factor (CAF) is an adjustment to shipping companies’ freight rates to take into account the effect over time of fluctuations in currency exchange rates.
Who can issue bill of lading?
Transportation Company (carrier) issues these records to the shipper. A bill of lading indicates a particular carrier through which the goods have been placed to their final destination and the conditions for transporting the shipment to its final destination. Land, ocean and air are the means used for bills of lading.
What is a PSS charge?
PSS. PEAK SEASON SURCHARGE. It is a fee applied in periods of peak demand. It is levied to all shipments that move in certain trades during the high volume periods.
What is the surcharge PSS?
What is PSS? PSS (Peak Season Surcharge) is a variable surcharge that carriers may apply during times of peak demand. PSS may be applied at any time of year, but tends to be more common before the fall/winter holidays and before Chinese New Year.
What is the Bunker adjustment factor (BAF) surcharge?
Bunker adjustment factor, bunker surcharge or BAF refers to floating part of sea freight charges which represents additions due to oil prices . BAF charges used to be determined by Carrier Conferences to be applicable for a certain period on a certain trade route.
What is the adjustment factor?
The adjustment factor is based on the percent of impervious cover on an individual property. It adjusts the drainage charge upwards for properties with more than 52.3% impervious cover and downwards for those with less than 52.3% impervious cover.
What is the definition of adjustment factor?
Definition of adjustment factor. When calculating something, a figure introduced to balance the effect of something that is not typical or representative.
What is a bunker surcharge?
The emergency bunker surcharge, also called EBS, is an emergency expense that has to be paid to cover higher fuel prices than were originally anticipated. A traditional bunker surcharge is known ahead of time. The emergency bunker surcharge is usually a last-minute implementation and an inconvenience for shippers.