Bunker Adjustment Factor (BAF) Calculator

How carriers calculate BAF

Carriers publish their own methods, give the charge their own name, and set the factors commercially. The two below are shown as each carrier wrote them. Neither is an industry formula, and the trade factors themselves are not in these documents.

Maersk: trade factor multiplied by fuel price

Maersk's Bunker Adjustment Factor (BAF) Appendix states:

BAF = Maersk Trade Factor x Fuel Price

It describes the trade factor as "a function of bunker consumption per loaded container and volume imbalance between Headhaul and Backhaul in a specific trade (ton/FFE)". FFE is a 40-foot container, so the result is a charge per 40-foot container. The same document says the trade factors are reviewed annually.

• Fuel price: Platts index, VLSFO (0.5% Sulphur), delivered, reference ports Rotterdam, Singapore, Balboa.
• Review: quarterly, with a trigger of 10 USD per ton upward or downward.
• Reefer containers: 1.5 times the dry-container BAF, with an exception the document lists for some trades.

Maersk said in its September 2019 advisory that its BAF "is designed to adjust contract rates within the duration of a contract, based on fluctuations in fuel-related costs" and applies to contracts with validity longer than 3 months. On 31 May 2024 it announced a Fossil Fuel Fee that replaces BAF and its Low Sulphur Surcharge in phases: new contract quotes over 3 months' validity are quoted with it from 1 July 2024, and existing contracts keep BAF until renewal.

Hapag-Lloyd: fuel price, consumption and carried TEU

Hapag-Lloyd calls its charge Marine Fuel Recovery (MFR). Its IMO2020 one-pager gives:

MFR [per TEU] = Fuel price [per TO] x Fuel consumption [TO] / Carried TEU

TO is tonnes. The press release of 8 October 2018 says the formula takes into account "the vessel consumption per day, fuel type & price (specific for HSFO, LSFO 0.5% and LSFO 0.1%), sea and port days, and carried TEU", taken from a typical representative service on a trade. Hapag-Lloyd's IMO2020 presentation notes: "The same MFR applies to both directions".

What the two have in common

Both multiply a fuel price per tonne by the tonnes of fuel attributed to one container. Maersk states that quantity directly as a trade factor per 40-foot container and builds the imbalance between headhaul and backhaul into it. Hapag-Lloyd derives it per TEU from a voyage's fuel consumption and the TEU carried. The calculator above does either multiplication with your numbers.

Why the fuel is VLSFO

Since 1 January 2020, the International Maritime Organization's "IMO 2020" rule limits sulphur in the fuel oil used on ships outside designated emission control areas to 0.50% by mass, down from 3.50%. Inside emission control areas the limit is 0.10%. Very low sulphur fuel oil (VLSFO) is the 0.5% grade, and it is the fuel type Maersk's BAF Appendix references. The prices here are the latest Rotterdam and Singapore VLSFO prices in USD per metric ton, each shown with its date.

Sources

• Maersk: Bunker Adjustment Factor (BAF) Appendix
• Maersk: Transition to one Fossil Fuel Fee (FFF) for Contracts over 3 months' validity
• Maersk: Update on Bunker Adjustment Factor (BAF) and new Environmental Fuel Fee (EFF)
• Maersk: Glossary of shipping terms
• Hapag-Lloyd: IMO2020: For greener shipping (one-pager)
• Hapag-Lloyd: Hapag-Lloyd establishes Marine Fuel Recovery (MFR) mechanism
• Hapag-Lloyd: IMO2020: For greener shipping (presentation)
• International Maritime Organization: IMO 2020 – cutting sulphur oxide emissions

Carrier and IMO documents last checked November 13, 2026. Carriers revise these terms, so confirm the current method with your carrier or in your contract.