What is fuel Adjustment Factor?
What is fuel Adjustment Factor?
The Fuel Adjustment Factor or FAF is a surcharge added to your freight rates to cover the cost of fuel. You will find that most established freight forwarders will provide the FAF surcharge as an additional cost to your agreed freight rates.
How does fuel adjustment factor work?
The Fuel Adjustment Factor is a variable surcharge used by transport operators and freight forwarding companies to manage fluctuations in the cost of diesel fuel. This percentage is calculated monthly and appears on transport invoices as a seperate line item to recover these fuel price movements.
What does Bunker Adjustment Factor do?
The Bunker Adjustment Factor (BAF) is an additional charge levied on the shippers to compensate for fluctuations in the price of the ship’s fuel. The trade factor reflects the average fuel consumption on a given trade as a result of variables such as transit time, fuel efficiency and trade imbalance.
How is BAF calculated?
The BAF is calculated by multiplying the so-called ‘trade factor’ by the fuel price. The fuel price will be the same for all trades and is calculated as the average bunker price in key supply ports around the world over a period said to be “typically” three months.
What does PSS mean in shipping terms?
Peak Season Surcharges
With immediate effect all LCL co-loaders appear to be charging additional PSS (Peak Season Surcharges) for import sailings from China, Hong, Taiwan & India.
What is LSS in shipping?
Low Sulphur Surcharge arises in shipping industry on account of usage of lower Sulphur content in fuel oil.
How do you calculate FAF?
- FAF Rate Calculation = ( B – A ) / A * 100 * 22%
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- A = base rate of diesel fuel included in calculated schedule of rates.
- B = end of month rate of diesel fuel (increase or decrease).
- 22% = Bulk Lines 2017 diesel cost basket component of total costs.
Who pays Bunker Adjustment Factor?
ship operator
The ship operator is responsible for the payment of these bunkers to the bunker supplier. As fuel prices are quite volatile, the shipping lines charge a fee called “Bunker Adjustment Factor (BAF)” to cover the fluctuations in global bunker costs.
What does CAF stand for in shipping?
currency adjustment factor
The currency adjustment factor (CAF) is a surcharge levied in addition to freight and customs charges on imports from certain Asian countries. The CAF is intended to compensate for currency fluctuations between those nations’ currencies and the U.S. dollar that may affect shipping rates.
What is the salary of BAF?
Bachelor of Accounting and Finance (BAF) Highlights
| Level | Undergraduate |
|---|---|
| Average Starting Salary | Rs. 2 – 6 lakhs per annum |
| Minimum Qualification | 10+2 |
| Minimum Marks | 50%-60% |
| Selection Process | Merit/ Entrance Based |
What is BAF and CAF?
BAF means Bunker Adjustment Factor and CAF means Currency Adjustment Factor. 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 PSS fee?
Peak Season Surcharge
What is PSS? PSS (Peak Season Surcharge) is a variable surcharge that carriers may apply during times of peak demand. PSS may be applied at any time of year, but tends to be more common before the fall/winter holidays and before Chinese New Year.
When do you make a fuel price adjustment?
If the contractor has indicated a fixed price for a certain fuel type, no adjustment will be made for that fuel type. The base fuel price for each fuel type will be the price shown on the current fuel index table for the month prior to the bid opening month.
Where to find contractor affidavit for fuel cost adjustment?
The contractor’s affidavit costs are found on the Fuel Cost Adjustment Affidavit found in the signed bidder’s proposal. The amounts shown on the attached example affidavit are entered in the Contractor Affidavit Costs columns on the worksheet. The fuel ratios are calculated using the contractor’s affidavit costs.
What are the code numbers for fuel cost adjustment?
Spec and code numbers have been established for adjustment of the three fuel types. They are as follows: 109 0100 Diesel Fuel Cost Adjustment 109 0200 Unleaded Fuel Cost Adjustment 109 0300 Burner Fuel Cost Adjustment The adjustments will be added to CARS using the Contract Adjustment feature.