Every ocean freight invoice has two components. BAF is transparent and separately managed. The base rate hides something important inside it.
BAF was pulled out of the base rate decades ago because fuel costs are volatile and external and were breaking contracts.
Service costs change slowly — maybe once a year at contract renewal. Space costs change week to week, driven by demand surges, blank sailings, and seasonal peaks. One is a known cost. The other is a market risk.
The industry already separated fuel costs from the base rate because they were volatile and external. Space scarcity has the exact same properties.
The Allocation Equivalent Unit — a tradable loading guarantee that lives alongside your contract, not inside it.
Shippers purchase AEUs from carriers through Laneway by service and week. Space is priced — visible and guaranteed.
Space becomes visibleBuy as much or as little space as you need, week to week. The AEU price adjusts to reflect market conditions.
Cancellations become cargoShippers attach the AEU code to their contract booking. The carrier recognizes the code and attaches the loading guarantee.
Space guaranteedSeparating BAF from the base rate gave shippers and carriers transparency and control over a volatile cost. Space scarcity is the same kind of cost. Separating it unlocks the same benefits for allocation.