Thu 17 Jul 2008 13:38

CMA-CGM introduces new BAF system


New system aims to provide greater transparency for CMA-CGM's customers.



Leading container shipping firm CMA-CGM has announced that it will introduce a new Bunker Adjustment Factor (BAF) system in its effort to provide greater transparency in its relationship with customers.

Effective August 1st 2008, the new BAF on the Westbound trade will be usd 324 $/TEU.

This initial amount is based on an average 380-centistoke (cst) reference price in a basket of world ports where CMA CGM is regularly bunkering, reflecting the actual bunker consumption per TEU loaded, averaged for the Transatlantic north and south trades.

CMA-CGM says that from now on it will monitor this average 380-cst price from the 25th to the 25th of each month. For each variation of US$ 10, a pro-rata amount of US$ 6 for the Westbound Trade will be added or subtracted to the prevailing BAF rounded-down to the nearest US$.

The company says it will notify customers of any changes no later than the first day of each month, for an application 30 days later.

As the new BAF effective August 1st 2008 will be lower than the one currently in force, CMA-CGM says the difference will be reintegrated in Basic Ocean Freight.

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