Wallenius Wilhelmsen has launched a re-engineered bunker adjustment factor, BAF2.0, to prepare for future fuels on the path to net-zero emissions by 2040.
BAF2.0 aims to streamline and simplify the adaptation of alternative fuels. Starting 1 January 2025, BAF2.0 will apply to all new ocean businesses.
Bunker Adjustment Factor (BAF) is a pricing mechanism used to adjust freight rates based on fuel price fluctuations.
BAF2.0 will capture fuel price fluctuations while incorporating a future fuel mix, ensuring cost predictability during the shift to net-zero fuels, according to Wallenius Wilhelmsen.
The new system consolidates various fuel types into a single charge, with the company gradually transitioning from fossil fuels like VLSFO and MGO to alternatives such as biofuel, bio-LNG, and methanol.
Designed to support regulatory compliance, BAF2.0 helps both Wallenius Wilhelmsen and its customers meet mandates for alternative fuel use, offering greater transparency and fairness in future fuel costs.
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“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, Chief Operating Officer Shipping Services at Wallenius Wilhelmsen.
“We are taking a considerable step towards futureproofing with BAF2.0. 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. We strongly believe this is the way forward for the industry.”
Earlier this month, Wallenius Wilhelmsen entered a five-year agreement with a leading agriculture, forestry and roadbuilding equipment manufacturer.
