The bunker adjustment factor (BAF) is a fuel surcharge that ocean carriers add on top of the base freight rate. It rises and falls with the cost of marine fuel. On your quote it shows up as its own line, separate from the base rate and separate from port charges such as the terminal handling charge (THC). If you import from China to the US, you will see it on almost every sea freight quote, and it is worth understanding before you compare prices.
Key points
- BAF is a carrier fuel surcharge added to the base ocean rate. It exists so carriers can pass fuel cost changes along without renegotiating the whole rate.
- THC is a different charge. It pays for terminal work at the port, and origin and destination are separate line items.
- BAF amounts depend on the carrier, the trade lane and the tariff formula. Two quotes with the same base rate can land at different totals.
- Before you accept a quote, confirm the BAF source, whether other fuel surcharges are stacked on top, and which end of THC is included.
- A DDP quote that bundles these lines into one total makes landed cost easier to plan.
What BAF means in ocean shipping
BAF stands for bunker adjustment factor. “Bunker” is the shipping term for the fuel a vessel burns. The surcharge covers changes in that fuel cost, so the carrier is not stuck with a loss when prices jump between the time a rate is set and the time the ship sails.
This is not a new idea. A U.S. Department of Transportation report on shipping cost adjustments describes BAF as a mechanism that moved the risk of volatile fuel prices from the carrier to the shipper. It lets carriers pass on cost increases without reopening the base freight rate.
For a seller, the practical meaning is simple. The base rate tells you what the carrier charges to move a container or a share of one. BAF tells you how much of today’s fuel bill rides on top of that. When fuel moves, the base rate stays put and the BAF line absorbs the change.
Other names you will see
Carriers and forwarders use several labels for the same idea: bunker surcharge, BAF charge, fuel adjustment factor, or a low sulphur surcharge. Some tariffs list more than one fuel-related line. That matters, and we come back to it below under stacking.
How a BAF charge is calculated
Check the carrier’s tariff or contract for its formula. For example, the Maersk BAF appendix describes a formula that multiplies a carrier-specific trade factor by a fuel price.
In plain terms, a formula like that has a few moving parts:
- A fuel price index. The tariff points to a published bunker price, and the charge moves when that price moves.
- A trade factor. Fuel use differs by route, vessel type, speed and capacity, so a transpacific lane does not carry the same BAF as another lane.
- An update schedule. Carriers revise the amounts periodically, and the revised figures go into their published tariffs.
Quotes often show the resulting amount. Ask which index, trade lane, equipment type and effective period the carrier used.
Why it differs by carrier and lane
The same report points out that carriers have more tools than shippers to manage fuel risk, such as hedging and operational changes. Each carrier makes its own choices, and each prices its own routes. So two carriers serving the same port pair can publish different BAF amounts for the same period.
An illustration of the effect
These numbers are made up to show the mechanics, not a real quote.
| Line | Quote A | Quote B |
|---|---|---|
| Base ocean rate | $2,000 | $1,850 |
| BAF | $150 | $300 |
| Origin THC | $120 | $120 |
| Total so far | $2,270 | $2,270 |
Quote B looks $150 cheaper on the base rate, but its larger BAF erases the gap. Compare totals, line by line, never the headline rate alone.
Where to find the current BAF
BAF is revised on a schedule, so any number printed in an article goes stale. The reliable approach is to check the carrier’s published tariff for the period your cargo sails. Some trade publications also collect carrier-by-carrier amounts. One example is a carrier BAF schedule roundup for U.S. export and import lanes, which lists carrier-specific amounts for the October to December 2026 period. That is the kind of page to look for when you search for current BAF figures: dated, per carrier, per lane.
Two habits help:
- Ask for the BAF to be quoted as its own line, with the period it applies to.
- Ask whether the amount is fixed for your booking or can change before sailing.
If you ship through a forwarder, ask for both answers in writing. Your forwarder sees the carrier tariffs; you see only the quote.
BAF vs. terminal handling charge (THC)
Sellers often mix these two up because both are small-looking add-ons on a sea freight quote. They pay for different things.
| BAF | THC | |
|---|---|---|
| What it pays for | Vessel fuel cost changes | Physical work at the terminal |
| Who sets it | The carrier, by tariff formula | Set by port and container size, and it varies by carrier |
| Does it move with oil prices? | Yes | Generally not |
| Where it applies | Along the trade lane | Origin port and destination port, each separate |
Terminal handling charges cover handling at the port, such as lifting and stacking a container. Check the tariff or quote for the terminal and equipment type it covers.
The origin and destination trap
Quotes may list origin and destination terminal handling separately. Ask which charges are included at each end and who will invoice any excluded charges.
The fix is a one-line question to your forwarder: “Which THC is included in this total, origin, destination or both?”
Incoterms matter here too. Practitioners warn that misreading terms such as CIF often leads to unexpected destination charges, because buyers assume more is covered than the term actually includes. Our guide to freight contract terms and key clauses walks through what to confirm before you sign.
What to check before you accept a quote
Use this list on any sea freight quote, from any provider.
- Is BAF a separate line? If it is buried in an “all-in ocean rate,” ask what portion is fuel.
- What period does it apply to? A BAF tied to the wrong sailing month is a common source of invoice surprises.
- Is it based on the carrier’s tariff or service contract? A freight audit guide advises checking BAF against the tariff or contract, not against the quote alone.
- Are other fuel surcharges stacked? According to that same audit guide, some carriers stack fuel-related charges such as LSS, EBS and BAF unless the service contract carries a no-stacking or surcharge-lock clause. If you have volume and a contract, ask for one.
- Which THC is included? Origin, destination, or both.
- Is the unit clear? Confirm whether each charge applies per container, per cubic meter or per shipment. Our CBM calculation guide shows how volume-based pricing changes a small shipment’s total.
- What is missing? Customs entry, duties, drayage and delivery to the warehouse are separate from ocean charges. Our piece on how to avoid freight forwarder hidden fees covers the lines most often left off.
Worked example: reading a messy quote
Imagine a quote that says “Ocean freight $1,900 + surcharges.” That phrase is the problem. You cannot compare it to anything. Reply with a request to itemize: base rate, BAF, any other fuel line, origin THC, destination THC, documentation fees, and any peak season surcharge. Once the quote is itemized, you can set it beside another one and see where the money goes.
Peak-season charges deserve their own look, because they often appear in the same quarters as BAF changes. See our explainer on the peak season surcharge and how to plan for it.
Why BAF matters more for small sellers
A large importer with a service contract negotiates fuel terms, sometimes locks surcharges, and has a logistics team to audit invoices. A small or mid-sized Amazon seller usually has none of that. You are buying space on a spot basis or through a forwarder, you ship a few pallets or one container, and a $150 swing on a small shipment is a visible chunk of margin.
The larger risk is timing, not just cost. If a surprise charge arrives after your goods are already moving, you pay it or your freight sits. For FBA sellers, a delayed inbound can mean stockouts. Our guide to FBA long term storage fees and freight timing shows the other side of that coin, where bad timing leaves stock sitting too long.
For a broader view of everything that sits in a sea freight price, read international freight cost factors explained for sellers and the 2026 Amazon seller freight cost factors guide. If you wonder how a quoted rate compares to the market on a given day, the spot rate explainer helps.
Perspective
Most of the BAF confusion we see is not about the fuel. It is about visibility. A seller gets a quote with a base rate that looks good, then meets BAF, THC and a few other lines after the goods have left the factory.
That is why we built our service around the DDP model. Customs, duties and delivery sit in one workflow, and the quote is meant to show the landed cost to your fulfillment center, not just the ocean leg. When the total is clear up front, you can price your product and plan your replenishment with confidence.
Ask your ForwarderOne account manager which fuel and terminal charges apply to your quote and which charges could change before the shipment moves.
How DDP changes the BAF conversation
Under DDP, the seller arranges delivery to the named place and bears applicable transport, import clearance, duties and taxes under the sale contract. A forwarder can arrange those services for the seller. Confirm what the written freight quote includes.
That does not make BAF disappear. The carrier still charges for fuel. What changes is who tracks it and how it reaches you: inside a single, itemized quote rather than as a series of separate invoices from different parties.
If you want that kind of setup, our DDP shipping from China to the USA page explains how the process works from pickup to delivery.
FAQ
What does BAF stand for in shipping?
BAF stands for bunker adjustment factor. It is a surcharge carriers add to the base ocean freight rate to reflect changes in marine fuel costs. It appears as its own line on a quote or invoice.
Is BAF the same as the terminal handling charge?
No. BAF covers fuel and follows a formula in the carrier’s tariff, while THC pays for physical handling of the container at the port. THC is charged at the origin and destination ports as separate items, so check which one your quote includes.
Where can I find the BAF for 2026?
Check the tariff of the carrier that will move your cargo for the period you sail. Trade publications also list carrier-specific amounts by quarter and trade lane, such as the carrier BAF roundup for U.S. lanes. Since the amounts are revised periodically, ask your forwarder to confirm the figure that applies to your booking.
Can a carrier charge several fuel surcharges at once?
A tariff or service contract can list multiple fuel-related charges. Ask whether BAF, low-sulfur and emergency bunker charges apply together, and whether the contract limits how they can be combined.
Does DDP shipping include BAF?
A DDP quote is meant to cover the full delivered cost, so ocean surcharges are part of the price you are quoted rather than separate bills. Ask for the quote to be itemized so you can see what each line covers.
Request an itemized ocean freight quote
Share your origin, destination and cargo details with ForwarderOne. Ask for the base rate, fuel charges and terminal fees in writing.
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