Scribd
Upload
292 views

BAF Vs CAF

BAF stands for Bunker Adjustment Factor and refers to a surcharge added to ocean freight by shipping companies to offset fluctuating fuel costs. CAF stands for Currency Adjustment Factor and is a charge used to minimize losses from fluctuations in currency exchange rates. While BAF adjusts for fuel price changes, CAF adjusts for changes in currency values between the origin and destination countries. Both BAF and CAF are common charges applied to sea shipping in addition to basic ocean freight.

Uploaded by

dhara_kid
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
292 views

BAF Vs CAF

BAF stands for Bunker Adjustment Factor and refers to a surcharge added to ocean freight by shipping companies to offset fluctuating fuel costs. CAF stands for Currency Adjustment Factor and is a charge used to minimize losses from fluctuations in currency exchange rates. While BAF adjusts for fuel price changes, CAF adjusts for changes in currency values between the origin and destination countries. Both BAF and CAF are common charges applied to sea shipping in addition to basic ocean freight.

Uploaded by

dhara_kid
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

What is the difference between BAF and CAF?

What is BAF? How does BAF work in international shipping? What does the term CAF means in shipping and international trade? What are the difference between BAF and CAF in shipping under exports and imports? BAF means Bunker Adjustment Factor and CAF means Currency Adjustment Factor. How to distinguish between CAF and BAF? BAF and CAF are generally used by sea shipping carriers. These are charges which levied along with ocean freight to different locations at different season. What is the term BAF? When oil prices fluctuate globally, the BAF is imposed to basic ocean freight to stabilize the cost of freight. BAF has derived from the term bunker (fuel storage containers). Such surcharge is added up on the ocean freight by shipping companies to supplement fuel factor costs and termed as BAF.

What is the term CAF? How does CAF work?

CAF is one of the charges added up on the basic ocean freight by sea shipping carriers on the basis of continues fluctuation of exchange rates. Currency Adjustment Factor CAF is applied on freight rates to minimize or control the losses or gains against fluctuations on the currency exchange rate tariff. CAF is a part of ocean freight to balance and cater against difference in currency value fluctuations. So, the major difference between BAF and CAF is that, BAF is related oil price and CAF is related to foreign currency

You might also like