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Supply Chain Advisors

BAF and ETS Policy Support

Implement our Standard BAF Policy, align the BAF charges for all your providers and reduce your exposure to excessive unilateral increases in fuel charges.

The Drewry Standard BAF Policy is an industry standard, accepted by the major ocean carriers and adopted by a number of our BCO clients. We provide a clear policy document, tailored to your company and its trade lanes, which can be communicated to your Logistics Service Providers (LSPs) prior to bid. 

 

Adopting our standard BAF Policy provides a number of benefits: 

  • Less complexity through standardisation
  • Simplify invoicing and auditing
  • Greater transparency, reduced risk of excessive charges
  • Incorporates our latest view on new fuel types
  • Use your BAF policy as a pre-condition to bid for your business

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BAF Audit and Forecasting Services

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The Middle East ceasefire may have reduced geopolitical tensions for the time-being, but it doesn't eliminate BAF risk. For many shippers, the next challenge is understanding how and when bunker surcharges will adjust.

 

Now is the time to ask:

✔ Should emergency BAFs (EBAFs) now be removed?
✔ When will standard BAF formulas catch up?
✔ Are we paying twice?
✔ Which carriers will reduce surcharges first?
✔ How should we budget for the remainder of the year?

 

The answers won't be the same across every carrier or trade lane. Different fuel adjustment mechanisms, timing and contract terms can all affect what you should be paying.

 

Drewry's BAF Audit and Forecasting services provide an independent assessment of your current position, helping you identify potential overpayments, understand future BAF movements and improve budgeting for the months ahead. A straightforward, cost-effective review today could help reduce unnecessary freight costs tomorrow.

 

To learn more about this service, email our ocean freight procurement team at supplychains@drewry.co.uk

 


In their own words...

Director, Global Logistics, Bissell Homecare, Inc.

"We appreciate and support Drewry’s BAF/ETS program for its clear, data-driven approach. The use of market indices ensures accuracy and fairness, while the streamlined structure enables efficient and consistent application across our carrier and provider base."
 

Transportation Manager, Global Paper and Pulp Manufacturer

"Drewry provided the market intelligence needed to take-on the complexities and uncertainty in BCO management of today’s marine fuel issues..."

 

Senior Procurement Manager, International Provider of Office Supplies

"Our partnership with Drewry equipped us with the necessary resources to customize a regular bunker management program which we have successfully implemented across our carrier portfolio."
 

 

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