Bunker Adjustment Factor


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Bunker Adjustment Factor

An increase in a shipping rate as the result of increased oil prices. Because higher oil prices add to expenses, a shipper may set a bunker adjustment factor so as not to reduce profits. Each shipping company sets its own bunker adjustment factor; regulators monitor BAFs so collusion does not take place.
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The bunker adjustment factor of infant tickets, priced at 10% of the average adult ticket, will be exempt.
Specifically the bunker adjustment factor of the flights at or below 800 km will be CYN40 for each passenger, and CYN70 for passengers on flights more than 800 km.
From North & Southeast Asia to US West Coast, CMA CGM has decided to implement the following Bunker Adjustment Factor (BAF) Effective October 1st, 2010:
An Analysis of Bunker Adjustment Factors and Freight Rates in the Europe/Far East Market (2000-2004).