What is BAF in shipping?

The bunker adjustment factor: a surcharge on ocean freight that covers the ship's fuel cost and is updated as fuel prices change, usually per container and per trade.

How is the bunker surcharge calculated?

Usually as a trade-specific factor for fuel burned per container, multiplied by a fuel price. Maersk's formula multiplies its trade factor by the weighted price of the fuel types the ships consume.

How often does BAF change?

Most lines review it periodically; Maersk reviews its fossil fuel fee quarterly, publishing the next quarter's amounts a month ahead.

Term

Bunker adjustment factor (BAF)

The bunker adjustment factor (BAF) is the surcharge shipping lines add to ocean freight to cover the cost of ship fuel, recalculated as fuel prices move. Lines now give it their own names — Maersk's fossil fuel fee, Hapag-Lloyd's marine fuel recovery. From Asia to North Europe in Q4 2026, Maersk's was USD 570 per 40ft dry container.

Also called BAF, bunker surcharge, fossil fuel fee, FFF, marine fuel recoveryUpdated 13 October 2026

How it is calculated

Hapag-Lloyd describes its marine fuel recovery as a formula that combines consumption with market prices for fuel oils. Maersk publishes its fossil fuel fee (FFF) method, which in 2024 began replacing its separate BAF and low-sulphur surcharge: a trade factor multiplied by the weighted price of the fuels burned, reviewed quarterly. The trade factor reflects bunker consumption per loaded container and the imbalance between a trade's headhaul and backhaul.

FFF = trade factor × (share of fuel A × price A + share of fuel B × price B) · Maersk's own example: trade factor 1, 20% LSMGO at USD 900 and 80% VLSFO at USD 600 → 1 × (180 + 480) = USD 660

Maersk sets a 20ft at half the 40ft rate, and a reefer at 1.5 times a dry box.

Worked example: one 40ft from Shanghai to Rotterdam, Q4 2026

Maersk FFF, Far East Asia → North Europe: USD 570 per 40ft dry · plus its emissions surcharge for the same trade: USD 170 → USD 740 of fuel and emissions charges on top of the base rate

For Q4 2026 Maersk's averages were VLSFO USD 752.19 and LSMGO USD 1,157.90 a tonne; the emissions surcharge used an EU allowance price of EUR 78.97.

The rules behind the fuel

Since 1 January 2020, the IMO has capped sulphur in ships' fuel at 0.50%, down from 3.5% — which is why lines charged separately for low-sulphur fuel. Since 2024 the EU's emissions trading system has added a carbon cost on voyages to and from Europe, which lines charge as a separate emissions surcharge.

The mistake people make

Comparing base rates without the fuel line. A quote that looks cheaper on the base rate can carry a higher fuel or emissions surcharge, and these change every quarter; compare the total per container for the same validity period.

FAQ