Oil Prices Drive Shipping Costs Via Bunker Adjustment Factor

Oil Prices Drive Shipping Costs Via Bunker Adjustment Factor

Bunker Adjustment Factor (BAF) is closely linked to international crude oil prices. Brent Crude is a global benchmark, and OPEC production cuts and Iranian sanctions are key factors driving prices up. Businesses should closely monitor crude oil market dynamics, optimize shipping routes, lock in freight rates, and diversify risks to effectively control logistics costs. By understanding these factors and implementing proactive strategies, companies can mitigate the impact of fluctuating fuel prices on their supply chains and maintain profitability.

11/03/2025 Logistics Encyclopedia
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US Air Freight Gains Importance for Ecommerce Under New T86 Rules

US Air Freight Gains Importance for Ecommerce Under New T86 Rules

The adjustment of the T86 policy has placed significant tariff pressure on cross-border e-commerce. Air freight logistics from the United States, known for its speed and safety, has gradually become the preferred solution for sellers to cope with new regulations, helping businesses seek new development opportunities in a complex trade environment.

05/15/2025 Logistics
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Eastern Airlines Introduces New Baggage Policy

Eastern Airlines Introduces New Baggage Policy

Starting from January 10, 2023, China Eastern Airlines implemented new free checked baggage standards for flights to Europe, Australia, and Japan. Economy class passengers can check in two pieces of luggage, each weighing up to 23 kg; business class and premium economy passengers can check in pieces weighing 32 kg each; first-class passengers can check in three pieces. Additionally, members enjoy extra baggage privileges. The new standards aim to enhance service experience and cater to the diverse needs of passengers.

01/11/2023 Airlines
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Emergency Notice Significant Increase in Shipping Fees Get Informed About the New Policy

Emergency Notice Significant Increase in Shipping Fees Get Informed About the New Policy

Hapag-Lloyd announced that starting August 28, 2024, the GRI fees for shipping from Asia to South America and the West Coast will increase by $2,000. Additionally, a peak season surcharge will be imposed on container cargo from the Far East to Australia. This adjustment in policy occurs amidst frequent fluctuations in current market freight rates and has garnered widespread attention.

08/26/2024 Logistics
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Shipping Industry Grapples With Rising BAF Fuel Costs

Shipping Industry Grapples With Rising BAF Fuel Costs

BAF (Bunker Adjustment Factor) is a fee established by shipping companies to address fluctuations in fuel prices. By dynamically adjusting this fee, companies can manage cost changes. Combined with the IMO's low-sulfur fuel policy, BAF impacts logistics costs on shipping routes. Flexport has incorporated BAF into its rates to provide clients with a more transparent fee structure and better budget management.

08/05/2025 Logistics Encyclopedia
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Validity Period and Renewal Policy of ATA Carnet

Validity Period and Renewal Policy of ATA Carnet

The ATA Carnet is valid for a maximum of one year and cannot be extended, but renewal is possible. Due to the impact of the pandemic, customs policies allow for up to six months' extension for goods that have already undergone three extensions and cannot be transported. These flexible policies assist businesses in effectively dealing with external challenges and maintaining normal operations.

07/17/2025 Logistics Encyclopedia
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Delta Revises 2025 Capacity Over Tariff Policy Concerns

Delta Revises 2025 Capacity Over Tariff Policy Concerns

Delta Airlines' CEO stated that tariff policies have led to a decline in bookings. The company plans to not increase flight capacity in the second half of 2025 and will delay the delivery of Airbus aircraft. Despite exceeding expectations in the first quarter earnings report, the industry outlook remains grim.

04/22/2025 Airlines
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ICC Clarifies Content Usage Policy and Copyright Rules

ICC Clarifies Content Usage Policy and Copyright Rules

This article outlines the content usage policies of the International Chamber of Commerce and the importance of copyright protection. It emphasizes the necessity for users to obtain authorization when using website content and the need to comply with data protection laws, aiming to promote business compliance and respect for copyright.

08/05/2025 Logistics Encyclopedia
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WCO Adopts Evidencebased Research for Customs Policy Reform

WCO Adopts Evidencebased Research for Customs Policy Reform

The WCO research unit provides theoretical support for customs policy formulation through systematic studies and empirical analysis, promoting the modernization of international trade. Annual research conferences facilitate communication between academia and practitioners, aiding in policy adjustments and customs innovation, thereby laying the foundation for the safe and efficient development of global trade.

08/08/2025 Logistics
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Carleton University IATA Launch Air Transport Policy Certificate

Carleton University IATA Launch Air Transport Policy Certificate

The Air Transportation Principles and Policy Professional Certificate program, a collaboration between IATA and Carleton University, aims to provide professionals with a comprehensive understanding of governmental policies impacting civil aviation. Through five online courses, the program enhances participants' influence within the industry, cultivates public sector insights, and fosters private sector advantages, ultimately enabling greater success in the field of aviation policy. This program is designed to equip individuals with the knowledge and skills necessary to navigate the complex landscape of aviation regulations and contribute effectively to the industry's development.

11/03/2025 Logistics
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