What does the Baltic Dry Index tell us?
What does the Baltic Dry Index tell us?
The Baltic Dry Index (BDI) is an index of average prices paid for the transport of dry bulk materials across more than 20 routes. The BDI is often viewed as a leading indicator of economic activity because changes in the index reflect supply and demand for important materials used in manufacturing.
Why is the Baltic Dry Index rising?
The shipping industry’s bellwether, the Baltic Dry Index, hit a 10-year high this week propelled by a rally in commodities. The dry goods index, which typically increases in value on rising demand for commodities and raw goods, surged to 3,240 points on Monday.
What is Freightos Baltic index?
The Freightos Baltic Daily Index measures the daily price movements of 40-foot containers in 12 major maritime lanes. It is expressed as an average price per 40-foot container. This index is the world’s only ocean container pricing index that is reported daily.
Why is the Baltic Dry index so low?
The broader Baltic Dry Index, which tracks global shipping rates, fell to 466 on Monday, its lowest level in four years. The recent drop in freight rates also comes as a consequence of a slowdown in China’s domestic logistics.
Why does BDI drop?
The major factors impacting the BDI are: Commodity Demand. This is mainly a volume impact that could be irrespective of commodity prices. If expectations about future demand change and producers reduce their raw materials demand accordingly, then the BDI will drop.
What is the World Container Index?
The World Container Index (WCI) is the premium resource for frequent, independent container market data. The WCI provides weekly assessments of container freight rates, daily forward price estimates and a bank of historical price movements.
Why was the Baltic dry index so high in 2008?
Two key drivers of the BDI have undergone significant shifts since the index peaked in 2008: the supply of cargo ships and the Chinese economy. When shipping prices and shipping demand were higher not too many years ago, more cargo ships were ordered to meet the demand.
What is Drewry World Container Index?
The Drewry World Container Index is a composite of 40-foot ocean container freight rates on 8 major routes to/from the US, Europe and Asia as assessed by Drewry Maritime Research. This is primarily used as a benchmark for 40-foot ocean container spot rates across the various trade lanes that it represents.
What does the Baltic Exchange do?
The Baltic Exchange is a London-based exchange that provides real-time maritime shipping information to traders for settling physical and derivative shipping contracts.
What is Baltic Dry shipping index?
The Baltic Dry Index (BDI) is a shipping and trade index created by the London-based Baltic Exchange . It measures changes in the cost of transporting various raw materials, such as coal and steel. Members of the exchange directly contact shipping brokers to assess price levels for given shipping paths,…
What is Baltic Dry Freight Index?
The Baltic Dry Index (BDI) is a daily priced indicator of the cost of shipping freight on various trade routes for dry bulk carriers, based on data submitted by shipbrokers to the Baltic Exchange in London.
What is Baltic Exchange?
The Baltic Exchange is a London-based exchange that provides real-time maritime shipping information to traders for settling physical and derivative shipping contracts.