Maersk Line introduces a new BAF formula

Maersk Line introduced a new formula for the floating BAF (Bunker Adjustment Factor).

With the new formula, Maersk aims to provide a simple, fair, and transparent BAF for their customers. In addition, to sharing and recovering the extraordinary costs provided by the increasing bunker prices. Bunker prices have tripled within the last three years and bunker costs now constitute nearly half of the total vessel costs, up from 20 percent ten years ago. 'Today, we only recover approximately 55 percent of the bunker expenses via BAF surcharges. This poses a significant exposure to Maersk Line, and traditionally we have tried to recover this via rate increases,' says Vincent Clerc, Vice President for Pacific Services. 'With Maersk Line's BAF formula we will create more transparency, and the customers will experience a simple and fair way of applying BAF. The BAF formula has been built 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.
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