Maersk Introduces BAF Formula
Maersk Line is pleased to introduce a new formula for our floating BAF
(Bunker Adjustment Factor).
Bunker prices have tripled within the last three years and bunker costs
now constitute nearly half of the total vessel costs, up from 20% ten years
ago.
Maersk Line has built the BAF formula on principles that are common in other
transportation industries like airlines and parcel services. In these
industries, prices and rates reflect fluctuations in fuel prices, and
customers accept this as part of doing business in an industry, which is
very reliant on fuel.
The formula builds on elements such as fuel consumption, transit time, and
imbalances of container flows. However, only changes in the oil price will
entail changes in the BAF level.
