BAF Application

Turkon New Bunker Formula

Turkon Line is introducing new bunker surcharge application as of 1st April 2019, in connection to the new regulation which has been developed and adopted by the International Maritime Organization (IMO). The new low sulphur regulation will be applicable to all container shipping companies as from 1st of January 2020 to achieve the common goal of improving environmental performance in the container shipping supply chain.

The new BAF (Bunker Adjustment Factor) Formula will replace current BAF & EBS surcharge application. The fuel price used in calculation of the BAF will be based on actual level in main bunkering ports located on the mentioned service loop: Istanbul, Gibraltar, Rotterdam.

New bunker formula = Fuel Price  × Trade Factor

*The key elements of trade factors are,

  • The actual fuel consumption (ton/teu) per container moved on trade and imbalance factor reflecting that on some trades “back haulage” and “head haulage” coefficients.

The BAF tariff will be reviewed quarterly and will be adjusted according to actual fuel price change compared to previous adjustment. If the fuel price change is more than USD 40 then the BAF tariffs will be applied monthly.


The new BAF will be effective as of 1st April 2019.
The Low-Sulphur Surcharge (LSS) will remain as the current application, because that we will keep on using cleaner fuel (%0,1 sulphur) in ECA, Emission Control Areas.

The BAF for reefer Cargo will be applied by a coefficient factor/multiplier “1,5” over Standard Container(dry) BAF, reflecting the average electricity consumption of reefer containers.

Fuel cost will be taken Current application will start based on IFO 380 consumption, which is subject to change after shifting to fuel with low (%0,5) sulphur content.

Below you can find an “example only” table to illustrate the variation of BAF based on trades and fuel price. Accurate and actual BAF levels will be shared latest 15th of Review periods stated on BAF application calendar given in this announcement.

(*) For INTRA EME TRADE; From Turkey to Egypt & Lebanon & Israel corridors are considered as SB (SouthBound) Trade, the rest of all intra EME (EastMed) trade corridors are considered as NB (NorthBound) Trade.

For your easy reference you may find country-region table as below