- Wallenius Wilhelmsen is launching a re-engineered bunker adjustment factor, BAF2.0.
- BAF2.0 will prepare the maritime industry for future fuels on the path to net-zero emissions by 2040.
- BAF2.0 will streamline and simplify the adaptation of alternative fuels.
Wallenius Wilhelmsen is launching a re-engineered bunker adjustment factor, BAF2.0, to prepare for future fuels on the path to net-zero emissions by 2040. BAF2.0 will streamline and simplify the adaptation of alternative fuels.
Bunker Adjustment Factor (BAF) is a pricing mechanism used to adjust freight rates based on fuel price fluctuations. Wallenius Wilhelmsen’s BAF2.0 is not looking to re-invent the wheel, just improve it to fit a future that will include several fuel types like biofuel, bio-LNG, methanol and ammonia.
BAF for a net-zero future
BAF2.0 will work as before capturing fuel price fluctuations, but now including a future fuel mix. BAF2.0 therefore ensures cost predictability of the fuel mix during the transition to net-zero fuels, Wallenius Wilhelmsen notes.
“The re-engineered BAF is important in our net zero journey. We believe delaying the switch to net zero fuels will only increase costs later,” said Xavier Leroi, COO Shipping Services at Wallenius Wilhelmsen, adding that in a world where the cost of the green transition is talked about everywhere, the multi-fuel BAF will give cost transparency upfront and at a fair level.
BAF2.0 integrates multiple fuel types into a single charge. Wallenius Wilhelmsen’s fuel mix will gradually phase out fossil fuels like VLSFO and MGO in favor of alternative fuel such as biofuel, bio-LNG, and methanol.
Starting 1st January 2025, BAF2.0 will apply to all new ocean business.
“A re-engineered BAF that is prepared for future fuels will give our customers increased predictability of fuel costs in a landscape where fuel mix will only be more complicated. A new BAF also allows us, with our customers, to ensure compliance with environmental regulations as they become stricter,” commented Pia Synnerman, Chief Customer Officer at Wallenius Wilhelmsen.
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Source: Wallenius Wilhelmsen
