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 such as biofuel, bio-LNG, methanol and ammonia.

On the path to net-zero emissions by 2040, greater clarity around the cost of alternative fuels is essential. The re-engineered bunker adjustment factor, BAF2.0, will give exactly that, Wallenius says. 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.

BAF2.0 integrates multiple fuel types into a single charge. Wallenius Wilhelmsen’s fuel mix will gradually phase out fossil fuels such as VLSFO (very low sulfur fuel oil) and MGO (marine gas oil) in favor of alternative fuels such as biofuel, bio-LNG, and methanol.

Wallenius Wilhelmsen strongly believes that if the industry carries the well-known BAF concept into the future with this re-engineered version, the path to the net-zero ambitions set by the industry will be simpler and more streamlined for both carriers and customers. Starting 1 January 2025, BAF2.0 will apply to all new ocean business.