Wallenius Wilhelmsen unveils BAF2.0 for multi-fuel future

In Norway, Wallenius Wilhelmsen announced the launch of BAF2.0, a re-engineered bunker adjustment factor aimed at simplifying fuel cost management as the shipping industry transitions to net-zero emissions by 2040. Beginning January 1, 2025, BAF2.0 will apply to all new ocean business, integrating alternative fuels such as bio-LNG, methanol, and ammonia into a single pricing mechanism.

BAF, traditionally used to adjust freight rates based on fuel price fluctuations, has been revamped to account for a diverse fuel mix as fossil fuels like VLSFO and MGO are phased out. “The multi-fuel BAF will give cost transparency upfront and at a fair level,” said Xavier Leroi, Chief Operating Officer of Shipping Services, emphasizing its importance in the green transition.

The updated model not only offers clarity around fluctuating fuel costs but also ensures compliance with tightening environmental regulations. Pia Synnerman, Chief Customer Officer, noted that BAF2.0 provides customers with predictability and fairness as the industry navigates complex fuel mixes and stricter mandates.

Wallenius Wilhelmsen believes BAF2.0 will streamline the journey toward net-zero, balancing costs and sustainability for both carriers and their customers.

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