Community Forex Questions
What is Baltic Dry Index?
Baltic Dry Index (BDI) is a transportation and trade index created by the Baltic Exchange in London. It measures changes in the cost of transferring raw resources like coal and steel.
It is published daily by the Baltic Exchange in London. The Baltic Dry Index consists of four subindices that quantify the various sizes of dry cargo ships or merchant vessels: Capesize, Panamax, Supramax, and Handysize. Throughout the world, it is widely considered to be an indicator for dry bulk shipment stocks and a turning point for the overall shipping market.
On November 1, 1999, the Baltic Freight Index (BDI) replaced the Baltic Freight Index (BFI). BDI persists the BFI's prescribed time series; however, the voyages and vessels covered by the index have changed over the years, so caution should be practiced in assuming long-term data consistency.
Exchange members contact delivery brokers directly to determine prices for specific shipping routes, a product to ship, and delivery time frames.
It is published daily by the Baltic Exchange in London. The Baltic Dry Index consists of four subindices that quantify the various sizes of dry cargo ships or merchant vessels: Capesize, Panamax, Supramax, and Handysize. Throughout the world, it is widely considered to be an indicator for dry bulk shipment stocks and a turning point for the overall shipping market.
On November 1, 1999, the Baltic Freight Index (BDI) replaced the Baltic Freight Index (BFI). BDI persists the BFI's prescribed time series; however, the voyages and vessels covered by the index have changed over the years, so caution should be practiced in assuming long-term data consistency.
Exchange members contact delivery brokers directly to determine prices for specific shipping routes, a product to ship, and delivery time frames.
The Baltic Dry Index (BDI) is a key economic indicator that tracks the cost of shipping raw materials, such as coal, iron ore, and grain, across global trade routes. Published daily by the Baltic Exchange in London, it reflects the supply and demand for dry bulk shipping—large vessels that carry unpackaged commodities.
Unlike stock markets, the BDI is less influenced by speculation, making it a reliable gauge of global trade activity. A rising BDI suggests strong demand for commodities and economic growth, while a decline may indicate slowing trade. Traders and economists monitor the BDI for insights into industrial demand, supply chain trends, and economic health, particularly in emerging markets.
Unlike stock markets, the BDI is less influenced by speculation, making it a reliable gauge of global trade activity. A rising BDI suggests strong demand for commodities and economic growth, while a decline may indicate slowing trade. Traders and economists monitor the BDI for insights into industrial demand, supply chain trends, and economic health, particularly in emerging markets.
Nov 24, 2021 16:09