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International Trade & Logistics Terminology

Our glossary simplifies common industry terms in freight and logistics into clear, easy-to-understand explanations.

Bunker Adjustment Factor

Bunker Adjustment Factor A fuel surcharge (FSU) is an additional fee charged by airlines, shipping companies, and courier companies in response to fluctuations in international fuel prices. This fee is typically included separately in the freight rate and adjusted regularly based on oil prices. For exporters and cross-border e-commerce businesses, fuel surcharges directly impact logistics costs, particularly during periods of significant oil price increases, which can lead to increased overall freight costs. While fuel surcharges cannot be completely avoided, businesses can mitigate their impact through price comparison platforms, long-term partnerships, or by choosing the right shipping method. Due to its high reliance on fuel, air freight surcharges are typically more significant than sea and land transport. Therefore, fuel surcharges are an important factor to consider when planning international logistics.

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