Maersk Line introduces a new BAF formula
Maersk Line is pleased to introduce a new formula for our floating BAF (Bunker Adjustment Factor).
Our aim with the new formula is to provide a simple, fair, and transparent BAF for our customers. In addition, allowing us to share and recover 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% ten years ago.
“Today, we only recover approximately 50% of the bunker expenses via BAF surcharges. Naturally, 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 our customers will experience a simple and fair way of applying BAF. Amongst our customers, we see an increased understanding and acceptance of BAF as a floating mechanism, and our customers increasingly accept that we must share the extraordinary costs in a just way.”
Our aim with the new formula is to provide a simple, fair, and transparent BAF for our customers. In addition, allowing us to share and recover 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% ten years ago.
“Today, we only recover approximately 50% of the bunker expenses via BAF surcharges. Naturally, 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 our customers will experience a simple and fair way of applying BAF. Amongst our customers, we see an increased understanding and acceptance of BAF as a floating mechanism, and our customers increasingly accept that we must share the extraordinary costs in a just way.”