Bunker Adjustment Factor Clause for Contracts of Affreightment

INTERTANKO Bunker Adjustment Factor Clause for Contracts of Affreightment

This Contract of Affreightment is concluded on the basis of a bunker reference price of USD XXX.XX per metric ton (the ‘Bunker Reference Price’) and will remain so for the duration of this Contract of Affreightment.
The bunker price for the purposes of this Contract of Affreightment and adjustment of freight rates shall be the mid-delivered bunker price per metric ton published by [insert supplier or published index and port or place¹):

a. Until {insert date²} for IFO 380 CST on the date of {firm nomination or bill of lading³} [select one} or last published immediately prior to that date
b. After {insert date²} for low sulphur fuel oil that is compliant with b. MARPOL Annex VI 2020 regulatory changes (hereby applied in advance of 1^st January 2020) on the date of {firm nomination or bill of lading³} [select one] or last published immediately prior to that date

(the ‘Bunker Price’.)

Any difference between the Bunker Reference Price and Bunker Price shall be compensated for in the freight rate using the following bunker adjustment factors:
a. up to USD XX (plus or minus) there shall be no adjustment in the freight rate
b. for every USD 1.00 per metric ton above or below USD XX the freight rate shall be increased or decreased by USD XX cents (USD 0.00) per metric ton
c. the adjustment in the freight rate, whether a surcharge or a credit, shall always be calculated from the Bunker Reference Price.