What is the bunker surcharges how impact to oil prices?
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Bunker surcharges or Bunker adjustment factor (BAF) is a surcharge imposed on ship carriers against the oil price fluctuations. The bunker is referred to as fuel used in shipment and surcharge is an extra charge computed to make adjustments due to change in oil prices. During the shipment of goods, oil prices remain fluctuating. To balance out the actual price of fuel, an extra charge based on the fluctuation is levied. According to the trade routes, Twenty-foot equivalent units (TEU) as per capacity forms the basis for BAF. BAF is calculated by multiplying Fuel Prices with Trade Factor.
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