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Calculation of fuel, currency, and inland freight price adjustment factors for military marine shipping
  • Published Date:
    2013-11-01
  • Language:
    English
Filetype[PDF-1.38 MB]


Details:
  • Alternative Title:
    Final report : Bunker Fuel Adjustment Factor (BAF), Currency Adjustment Factor (CAF) and Inland Intermodal Adjustment Factor (FAF)
  • Resource Type:
  • Geographical Coverage:
  • NTL Classification:
    NTL-ECONOMICS AND FINANCE-ECONOMICS AND FINANCE ; NTL-ECONOMICS AND FINANCE-Economic Impacts ; NTL-ECONOMICS AND FINANCE-Marine Economics and Finance ; NTL-ECONOMICS AND FINANCE-Freight Economics and Finance ; NTL-MARINE/WATERWAYS TRANSPORTATION-Ships and Vessels ; NTL-MARINE/WATERWAYS TRANSPORTATION-Marine Economics and Finance ; AGR-FREIGHT-FREIGHT ; AGR-FREIGHT-Inland Waterways ; AGR-FREIGHT-Intermodal Freight Transportation ; AGR-FREIGHT-Shippers ; AGR-FREIGHT-Freight Rates ; NTL-FREIGHT-Freight Economics and Finance ;
  • Abstract:
    This report describes the refreshing of the USTRANSCOM Economic Price Adjustment (EPA) factors for use in the USC-7 contract. The three EPA factors developed by Volpe in 2009 are the starting point for this update, and these are the Bunker Fuel Adjustment Factor (BAF), Currency Adjustment Factor (CAF) and Inland Intermodal Adjustment Factor (FAF). 1 The basis for the development of each factor in 2009 was re-examined as part of the current refresh. This was done through reviewing current industry practices, relevant EPA related literature or articles, and any changes in the general container shipping market (e.g., emission regulations), to determine whether the underlying methodology used to develop the EPA factors in 2009 would need to be revisited. Based on the market review, the methodology used for the CAF and FAF factors was left unchanged. The introduction of the Emission Control Areas (ECAs) meant the BAF methodology had to be revised to incorporate this change in the container shipping market.
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