Maersk Line introduced its first “Maersk Line BAF Calculator” in 2008 based on the following formula:
BAFt = (Bunker Pricet – Base) x (ConsumptionTEU/day) x (Transit Timeday) x (Imbalance Factort)
In this case, the bunker price change is extracted from the difference in time t between a representative basket of prevailing bunker prices in a specific trade (Bunker Pricet) and a pre-defined bunker base element for a trade (Base) or “normal” bunker cost already included in the freight rate. The trade-specific component is a function of the consumption in metric tons per TEU per day of a representative vessel, a transit time in days, and an imbalance factor.