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SeaIntel: Pacific shipowners overcompensated by BAF

Shipowners sailing with 20-foot containers are being overcompensated with 30 percent by the Bunker Adjustment Factor (BAF), compared to shipowners sailing with 40-foot containers, writes SeaIntel.

Photo: Hyundai Merchant Marine

Since 2009, when a new formula for calculating Bunker Adjustment Factor was introduced, shipowners sailing with 20-foot containers have been overcompensated for a total of USD 580 million on the route across the Pacific, writes SeaIntel.

“It is therefore evident from our analysis, that the carriers transporting 20’ containers across the Pacific have been overcompensated on the BAF compared to the BAF for 40’ containers from at least 2009 when the current formula structure was implemented. This overcompensation amounts to more than ½ billion USD over the period. However this number is subject to some uncertainty, as no public information exists as to the amount of cargo moved in 20’ containers where the shipper was not subject to BAF,” writes SeaIntel.

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