Oil collapse and corona outbreak challenge the purpose of BAF

Container shipping lines use the BAF surcharge to ease the impact of the coronavirus, even though the surcharge is meant to cover fluctuations in the oil price, and this could challenge the entire purpose of the surcharge, writes SeaIntelligence.

by TRINE VESTERGAARD

With the plunge in the oil price, the bunker adjustment factor, BAF, which is made to offset fluctuations in the oil price, should have been lowered by the container shipping lines.

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