364:; it takes two years to build a new ship, and the cost of laying up a ship is too high to take out of trade for short intervals, the way you might park a car safely over the winter. So, marginal increases in demand can push the index higher quickly, and marginal demand decreases can cause the index to fall rapidly. e.g. "if you have 100 ships competing for 99 cargoes, rates go down, whereas if you've 99 ships competing for 100 cargoes, rates go up. In other words, small fleet changes and logistical matters can crash rates..." The index indirectly measures global supply and demand for the commodities shipped aboard dry bulk carriers, such as
22:
439:, historically required to load cargoes for departure at ports. Debt load of future ship construction was also a problem for shipping companies, with several major bankruptcies and implications for shipyards. This, combined with the collapsing price of raw commodities created a perfect storm for the world's marine commerce.
60:
The BDI is the successor to the Baltic
Freight Index (BFI) and came into operation on 1 November 1999. The BDI continues the established time series of the BFI, however, the voyages and vessels covered by the index have changed over time so caution should be exercised in assuming long term constancy
431:
On 20 May 2008, the index reached its record high level since its introduction in 1985, reaching 11,793 points. Half a year later, on 5 December 2008, the index had dropped by 94%, to 663 points, the lowest since 1986; though by 4 February 2009 it had recovered a little lost ground, back to 1,316.
77:
to more accurately describe the business interests of the merchants who gathered there. Today's Baltic
Exchange has its roots in a committee of merchants formed in 1823 to regulate trading and formalize the exchange of securities on the premises, which by then had moved to the Antwerp Tavern. The
336:
External research concluded that the contribution of the various dry bulk vessel types to the dry bulk market was 40% Capesize, 25% Panamax, 25% Supramax and 10% Handysize. This analysis was based on the fleet composition, vessel utilisation including ballasting and total cargo moved – based on
86:
Every working day, a panel of international shipbrokers submits their assessment of the current freight cost on various routes to the Baltic
Exchange. The routes are meant to be representative, i.e. large enough in volume to matter for the overall market.
410:
Other leading economic indicators, which serve as the foundation of important political and economic decisions, are often measured to serve narrow interests, and subjected to adjustments or revisions. Payroll or employment numbers are often estimates;
328:
Following consultation with members, in
January 2018 the Baltic Exchange announced that it will be implementing changes to the Baltic Dry Index (BDI). From 1 March 2018 the BDI will be re-weighted to the following ratios of timecharter assessments:
337:
import/export reports and AIS data, the BDI weightings will be reviewed on an annual basis. The decision to not include
Handysize contributions makes no statistical difference to the calculation of the BDI, based on the above weightings.
340:
The Baltic
Exchange will continue to report the Handysize vessel market and in November 2017, as part of the ongoing review of its indices, launched a trial of a new Handysize Imabari 38 benchmark vessel and seven timecharter routes.
747:
449:
Though rebounding to 2000 on 7 October, by 3 February 2012, the index made a new multi-decade low of 647 on a continued glut of dry bulk carriers and decreases in orders of iron and coal.
559:
419:
figures are consistently revised; and so forth. Unlike stock and bond markets, the BDI "is totally devoid of speculative content", says Howard Simons, an economist and columnist at
455:
By 15 November 2016 it rebounded to over 1000 sending the entire shipping industry to massive gains. Some companies reached 2000%+ in share price gains in as little as 5 days.
320:
The index can be accessed on a subscription basis directly from the Baltic
Exchange as well as from some financial information and news services such as Bloomberg and Reuters.
773:
585:
688:
787:
509:
852:
435:
By the end of 2008, shipping times had been already increased by reduced speeds to save fuel consumption, but lack of credit meant the reduction of
640:
442:
During 2009, the index recovered as high as 4661, but then bottomed out at 1043 in
February, 2011, after continued deliveries of new ships and
57:
timecharter averages. It is reported around the world as a proxy for dry bulk shipping stocks as well as a general shipping market bellwether.
563:
711:
443:
613:
759:
491:
845:
736:
699:
1042:
677:
547:
791:
404:
520:
510:"Shipping Indexes Signal Global Economic Trends - Globalization and Monetary Policy Institute 2010 Annual Report"
1037:
1032:
838:
353:. The demand for shipping varies with the amount of cargo that is being traded or moved in various markets (
980:
469:
464:
416:
361:
929:
861:
157:
China via
Australia/Indonesia or South Africa or Brazil or US West Coast to UK/Continent/Mediterranean
90:
These rate assessments are then weighted together to create both the overall BDI and the size specific
21:
637:
432:
These low rates moved dangerously close to the combined operating costs of vessels, fuel, and crews.
333:
and will no longer include the
Handysize timecharter average. A multiplier of 0.1 will be applied.
412:
317:
The BDI contains route assessments based only on time-charter hire rates "USD hire paid per day".
957:
715:
396:
388:
365:
415:
appears to measure nothing more than sentiment, often with no link to actual consumer behavior;
354:
102:
indices. The BDI factors in three different sizes of oceangoing dry bulk transport vessels:
885:
436:
965:
919:
666:
644:
495:
42:
38:
395:, such as concrete, electricity, steel, and food, the index is also seen as an efficient
349:
Most directly, the index measures the demand for shipping capacity versus the supply of
1001:
890:
875:
392:
774:"Dry Bulk Freight Index Drops and Container Shipping Line Forecasts and Profits Slump"
1026:
905:
895:
590:
420:
939:
880:
384:
350:
488:
825:
996:
924:
78:
first daily freight index was published by the Baltic Exchange in January 1985.
947:
914:
1006:
820:
452:
On 10 February 2016 the Baltic Dry Index reached the historic low of 290.
99:
91:
54:
46:
748:
Bloomberg Dry-Bulk Shipping Extends 2011 Drop to 20% on Australia Floods
1011:
215:
Dely Spore or Busan (during US grain season) round voyage via Atlantic
95:
50:
970:
816:
655:
830:
383:
Because dry bulk primarily consists of materials that function as
377:
105:
The BDI is based on daily assessments of the following 20 routes:
667:
Collapse in dry bulk shipping rates unprecedented in its severity
423:. "People don't book freighters unless they have cargo to move."
73:
coffee house in Threadneedle Street, London, changed its name to
369:
834:
700:
Baltic Dry Index Drops Below 1,000 for First Time in Six Years
678:
Commodity Shipping Index Advances the Most Since at Least 1985
373:
303:
West Africa trip via east coast South America to Skaw-Passero
287:
West Africa trip via east coast South America to north China
519:. Federal Reserve Bank of Dallas. p. 28. Archived from
548:
Data from Wikinvest, "Composition of the Baltic Dry Index"
37:) is a shipping freight-cost index issued daily by the
760:"Baltic Dry Index Is At 2000 - But Nobody Is Watching"
360:
The supply of cargo ships is generally both tight and
239:
Canakkale trip via Med or Bl Sea to China-South Korea
989:
956:
938:
904:
868:
689:
Marine Shippers Scuttled As Baltic Measure Hits Low
295:South China trip via Indonesia to east coast India
255:North China one Australian or Pacific round voyage
614:"The surprising relevance of the Baltic dry index"
817:The best economic indicator you've never heard of
638:Commodity indicators Show Strain On Bull (market)
536:The BDI began in 1985 as the Baltic Freight Index
737:Shipper Industrial Carriers Files for Bankruptcy
788:"Baltic Dry Index falls to 290, down 1 points"
656:Why you should care about The Baltic Dry Index
407:because it predicts future economic activity.
399:of future economic growth and production. The
311:South China trip via Indonesia to south China
199:HK-S Korea incl Taiwan 1 Pacific round voyage
846:
712:"Asian shipyards face prospect of bankruptcy"
8:
853:
839:
831:
331:40% Capesize, 30% Panamax and 30% Supramax
133:Continent/Mediterranean trip China-Japan
220:
207:HK-S Korea incl Taiwan trip to Skaw-Gib
162:
107:
20:
481:
141:China-Japan transpacific round voyage
125:Gibraltar/Hamburg transatlantic round
191:Skaw-Gib trip HK-S Korea incl Taiwan
7:
183:Skaw-Gib transatlantic round voyage
612:Rothfeder, Jefrey (26 June 2016).
403:is considered by some people as a
324:Review of the weighting of the BDI
247:US Gulf trip to China-south Japan
14:
16:London-based daily shipping index
263:North China trip to West Africa
45:. The BDI is a composite of the
560:"How are ships laid up today?"
1:
279:Skaw-Passero trip to US Gulf
271:US Gulf trip to Skaw-Passero
387:inputs to the production of
25:Baltic Dry Index 1985 - 2022
1059:
586:"Hurting the real economy"
405:leading economic indicator
149:China-Brazil round voyage
643:13 October 2008 at the
981:Freightos Baltic Index
470:2000s commodities boom
465:Freightos Baltic Index
417:gross national product
114:Capesize (180,000 dwt)
26:
508:Odom, Payton (2010).
494:11 March 2015 at the
444:flooding in Australia
75:Virginia and Baltick,
71:Virginia and Maryland
24:
826:Bloomberg BDIY index
1043:Economic indicators
958:Freight derivatives
413:consumer confidence
222:
164:
109:
427:Significant levels
397:economic indicator
366:building materials
221:
163:
108:
27:
1020:
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517:www.dallasfed.org
437:letters of credit
355:supply and demand
351:dry bulk carriers
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65:Historical origin
1050:
976:Baltic Dry Index
886:Bareboat charter
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790:. Archived from
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562:. Archived from
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526:on 10 April 2016
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223:
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31:Baltic Dry Index
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1038:Ship management
1033:Ship chartering
1023:
1022:
1021:
1016:
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966:Baltic Exchange
952:
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900:
869:Agreement types
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862:Ship chartering
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795:
794:on 7 April 2016
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718:on 18 July 2011
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645:Wayback Machine
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566:on 2 April 2015
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496:Wayback Machine
489:Baltic Exchange
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43:Baltic Exchange
17:
12:
11:
5:
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1002:Bill of lading
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990:Related topics
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891:Demise charter
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876:Voyage charter
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811:External links
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618:The New Yorker
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591:The Economist
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374:metallic ores
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229:(58,328 dwt)
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69:In 1744, the
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61:of the data.
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19:
975:
920:Ship-manager
881:Time charter
796:. Retrieved
792:the original
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720:. Retrieved
716:the original
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673:
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633:
621:. Retrieved
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595:. Retrieved
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568:. Retrieved
564:the original
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528:. Retrieved
521:the original
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409:
400:
389:intermediate
385:raw material
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172:(82,500 dwt)
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104:
89:
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82:How it works
74:
70:
68:
59:
34:
30:
28:
18:
997:Tramp trade
925:Ship-broker
623:1 September
530:19 December
1027:Categories
948:Worldscale
915:Ship-owner
722:31 October
476:References
345:Importance
1007:Demurrage
930:Charterer
821:Slate.com
362:inelastic
798:23 March
641:Archived
597:22 April
492:Archived
459:See also
227:Supramax
100:Supramax
92:Capesize
55:Supramax
47:Capesize
1012:Laytime
908:members
570:9 March
498:History
308:S10_58
276:S4B_58
268:S4A_58
244:S1C_58
236:S1B_58
196:P3A_82
188:P2A_82
180:P1A_82
169:Panamax
138:C10_14
96:Panamax
51:Panamax
41:-based
971:Imarex
378:grains
376:, and
300:S9_58
292:S8_58
284:S5_58
260:S3_58
252:S2_58
212:P6_82
204:P4_82
130:C9_14
122:C8_14
98:, and
39:London
524:(PDF)
513:(PDF)
800:2016
724:2008
625:2016
599:2015
572:2015
532:2015
370:coal
154:C16
146:C14
53:and
29:The
401:BDI
391:or
357:).
35:BDI
1029::
616:.
588:.
534:.
515:.
446:.
380:.
372:,
368:,
94:,
49:,
854:e
847:t
840:v
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627:.
601:.
574:.
33:(
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
