Per TEU calculation to replace percentage formula ALAN PEAT A NEWS flash was released just before FTW went to print and relates to the case of the unknown bunker adjustment factor (BAF) formula – hidden from public gaze for about 32-years, according to a long-standing industry source. Although the SA Shippers’ Council (SASC) has demanded the release of this secret formula from the Europe–SA Conference (ESAC), and this was agreed to in April, the conference has stalled it up to now. But, rather than its release, the latest from ESAC is that they have announced a “fundamental revision to the method of calculating” the bunker surcharge in the trade. From November 1, they added, “the surcharge will be calculated on a per TEU - rather than on a percentage basis”. And it has been done “with a view to providing greater transparency”, according to the conference. More details to follow in a later issue of FTW.
