Bunker Adjustment Factor recalculation when fuel price changes - the standard time-charter / liner tariff adjustment clause.
Formula
$$ \text{BAF} = (P - P_0) \cdot k_F $$
Symbol legend
| Symbol | Meaning | Unit | Source |
|---|---|---|---|
| $P$ | Current fuel price | USD/t | bunker market |
| $P_0$ | Base tariff fuel price | USD/t | CP base |
| $k_F$ | Fuel intensity per 100 t cargo | - | carrier data |
Sources
- BIMCO Bunker Terms.