Baltic Dry Index

The Baltic Dry Index (BDI) is a measure of the cost of shipping dry bulk commodities. It is calculated by taking the average of daily freight rates for a basket of commodities, including iron ore, coal, grain, and cement. The BDI is a widely followed indicator of the global shipping market, and it is often used as a proxy for economic activity.

The BDI was created in 1985 by the Baltic Exchange, a London-based shipping market. The index is based on the daily freight rates for a set of standardized dry bulk cargoes, which are transported in bulk carriers. The BDI is calculated by taking the average of the daily freight rates for each of the commodities in the basket.

The BDI is a useful indicator of the global shipping market because it reflects the demand for dry bulk commodities. When demand for dry bulk commodities is high, freight rates are also high, and the BDI rises. Conversely, when demand for dry bulk commodities is low, freight rates are also low, and the BDI falls.

The BDI is often used as a proxy for economic activity because it is closely correlated with the global trade of goods. When the global economy is growing, demand for dry bulk commodities increases, and the BDI rises. Conversely, when the global economy is slowing down, demand for dry bulk commodities decreases, and the BDI falls.

The BDI is a valuable tool for traders, investors, and analysts who want to track the global shipping market and the global economy. It is also a useful tool for businesses that rely on shipping to transport their goods.

Here are some additional details about the Baltic Dry Index:

* The BDI is published daily by the Baltic Exchange.
* The BDI is a weighted average of the daily freight rates for a set of standardized dry bulk cargoes.
* The BDI is a widely followed indicator of the global shipping market.
* The BDI is often used as a proxy for economic activity.
* The BDI is a valuable tool for traders, investors, and analysts who want to track the global shipping market and the global economy.