What is the shipping surcharge of FAF?

There is often a surcharge in the transportation price. Don't underestimate the surcharge. In fact, the surcharge on some routes will account for more than 30% of all transportation costs. Therefore, it is particularly important to understand the surcharge, otherwise it is not clear if it is slaughtered.

The so-called surcharge refers to the extra expenses beyond the basic freight caused by special circumstances or temporary events. Here, we would like to explain the introduction of FAF surcharge in particular.

FAF (fuel adjustment coefficient) is the fuel adjustment surcharge. This is because the fuel price rises, which makes the fuel cost of the ship exceed the fuel cost in the original approved transportation cost. Without adjusting the original freight rate, the shipping company added a surcharge to compensate for the increase in fuel cost. In the case of fuel surcharge, if the fuel price suddenly rises again, the shipping company can not adjust the original fuel surcharge, but increase the emergency fuel surcharge EBS (Emergency Adjustment Surcharge) in addition to the normal fuel surcharge. With the increase of fuel price this year, the fuel surcharge is also rising.

FAF (fuel regulation coefficient) has the same properties as the most commonly used BAF to some extent. Only FAF (Fuel Regulation Coefficient) is more common than BAF in Japan, Persian Gulf, Red Sea, South America, and occasionally in Southeast Asia, especially Japan.

Because there are many kinds of surcharges, you must ask clearly what additional fees are there besides the basic freight when making an inquiry. After all, it will be smoother to ask all the expenses in the later work. Freight forwarders must also clearly state the surcharge to be levied on each different route when quoting, so as to avoid disputes when charging.

If you don't understand, you can consult logistics Baba them.