What Is the Baltic Dry Index?

The Baltic Dry Index (BDI) is an economic indicator of the shipping industry, which includes changes in the dry bulk trading volume of the shipping industry.

Baltic Dry Bulk Index

(index)

BDI index is derived from BFI

Global GDP growth rate

Global iron ore and coal transportation demand

Global cereal transport demand

Global tonnage supply

International average marine fuel oil prices

Important war

Large-scale natural disaster

Large-scale social crises such as strikes and social unrest will affect shipping

The growth rate of global GDP affects the global demand for iron ore and grain transportation; natural disasters cause shortages of goods and goods

Mainly engaged in international cargo transportation. Its service quality and operating efficiency are based on the competition in the international market. It has the characteristics of complete competition. No specific organization or operator or government has the pricing power.

The industry has the characteristics of a business cycle and is closely related to the world economy and weather.

Coking coal, coal burning, and iron ore in bulk cargoes worldwide (exporting countries: Australia, Brazil, India; importing countries: China, Japan, Europe) have potential for growth, while cereals maintain a sea freight volume of 200 million tons per year, and demand is stable. As the major grain exporting countries in the northern hemisphere, the United States and Canada, harvest in spring and autumn, while in South America and Australia, grain and coal are concentrated in March, so the traditional peak season is from October to April each year.