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BAF means Bunker Adjustment Factor and CAF means Currency Adjustment Factor.BAF and CAF are generally used by sea shipping carriers. These are charges which levied along with ocean freight to different locations at different season.
What is the term ‘BAF?’
When oil prices fluctuate globally, the BAF is imposed to basic ocean freight to stabilize the cost of freight. BAF has derived from the term bunker (fuel storage containers). Such surcharge is added up on the ocean freight by shipping companies to supplement fuel factor costs and termed as BAF.
What is the term ‘CAF’? How does CAF work?
CAF is one of the charges added up on the basic ocean freight by sea shipping carriers on the basis of continues fluctuation of exchange rates. Currency Adjustment Factor CAF is applied on freight rates to minimize or control the losses or gains against fluctuations on the currency exchange rate tariff. CAF is a part of ocean freight to balance and cater against difference in currency value fluctuations.
So, the major difference between BAF and CAF is that, BAF is related oil price and CAF is related to foreign currency.
BAF bu nker adjustment factor
CAF currency adjustment factor
BAF = BUNKER ADJUSTMENT FACTOR
CAF = CURRENCY ADJUSTMENT FACTOR
BAF CHARGES > BUNKER ADJUSTMENT FACTOR (To level price changes in Gasoline/ Oil)
CAF CHARGES > CURRENCY ADJUSTMENT FACTOR (To level currency Exchange rate variation)
Both BAF & CAF charges are used by shipping lines along with freight charges.
These are condition based charges, to tackle unexpected variations, so that they may or may not apply to your cargo.
You may find some BLs with BAF charges applied while many without BAF, Additionally you may also find PANAMA CANAL charges on some movements as well. (see how Panama Canal facilitate shipping lines for shortening of route, which causes additional charges to shipper cargo , Check Videos on Youtube.com)
BAF stands for Bunker ( Shipping Fuel ) Adjustment Factor and CAF is for Currency Adjustment Factor . These are add-on , fluctuating charges imposed over the basic shipping freight adjusted on a monthly basis . BAF and CAF levels are determined either unilaterally by a single shipping line or declared by a conference or consortium of shipping lines.
BAF = Bunker Adjustment Factor which covers fluctuation of global bunkers (Fuel) cost, in the event of high brent prices which shipping company charges from the customer when the customer not agreed on all in while booking freight.
CAF = Currency Adjustment Factor shipping company charges to the customer when the USD gets weaker so customer prefers to go in "ALL IN" contract.
CAF
is an adjustment to shipping companies' freight rates to take into account the effect over time of fluctuations in currency exchange rates
BAF (Bunker adjustment factor) is the charges applicable on shipper's due to significantly changes in oil which will lead to carrier cost.
Bunker Adjustment Factor and CAF means Currency Adjustment Factor
BAF means Bunker Adjustment Factor and CAF means Currency Adjustment Factor.BAF and CAF are generally used by sea shipping carriers. These are charges which levied along with ocean freight to different locations at different season.
Bunker adjustment factor while loading bunker from port or ship to ship transfer on final loading BAF is calculated.
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