Our aim with our BAF Formula is to provide a simple, fair and transparent BAF to our customers. We have built the BAF formula based on other transportation industries such as 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 reliant on fuel. The formula incorporates elements such as fuel consumption, transit time, and container flows. However, only changes in the oil price will entail changes in the BAF level. Our customers will therefore only pay the variation in cost which means that BAF will increase when fuel prices climb and BAF will decrease when there is a reduction in fuel prices.
To support our BAF formula, we have developed the Safmarine BAF Calculator. With this web tool, our customers and other interested parties can calculate their BAF and make simulations based on fluctuations in bunker prices. In addition, the BAF Calculator provides information on the variables behind our BAF formula as well as an extensive Question and Answer section.
