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Baltic Exchange Dry Index

by Bunkerist
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The Baltic dry index is an index related to the daily commercial activities of dry cargo transport, which is a form of maritime transport. The index is based on the fees obtained in return for the cargo transported, that is, the freight prices and publishes daily. Freight prices are determined daily with the information collected from ship brokers and shown in the index. The index is published by the Baltic Exchange in London.

There are 4 types of ships in different tonnages included in the index. The average freight prices of these ship types are summed and divided into four, and the freight prices that make up the index are available. The increase in freight prices increases the index, while its decrease means the decrease in the index.

What is Baltic Exchange?

The Baltic Stock Exchange has been a limited company that has been growing since 1774 and institutionalized over time, setting freight prices. Freight prices, which were determined by traders and sailors in London in a small region, have become a stock market that concerns the whole sector and regions with the increase in sea transportation today. Today, there are 600 member companies in the Baltic stock exchange and these companies manage almost all of the world sea transportation. The Baltic Exchange, which has a history of 200 years, has published many indices related to sea transportation. The Baltic Dry Index (BDI) related to dry cargo transportation has been published on the Baltic Exchange since 1985.

Dry Cargo Transportation

Although dry cargoes consist of many raw materials, the most traded dry cargoes are; iron ore, coal, grain, steel and forest products. As dry cargoes are composed of raw materials used in production, the changes in this sector provide information about the course of the global economy. Therefore, the Baltic Dry Index (BDI) published by the Baltic Exchange and based on daily freight prices is a leading indicator that is known and followed by all economic actors, not only by sea traders.Ship Types Stated in the Baltic Dry Index (BDI)

There are 4 different types of ships shown in the Baltic dry index. Tonnages mean the maximum weight the ships will carry, including all loads. The tonnage of the ships are briefly shown in DWT. So its opening is known as Dead Weight Tonnage. If we sort the names of the ships in different tonnages according to their tonnage weights, the order will be as follows;

Capesize
Panamax
Supramax
Handysize

If we look at the total tonnage of these ships, the total tonnage of the Capesize type bulk cargo ship with the highest carrying capacity is 220,000 DWT. Total tonnage of Panamax type bulk carrier, which has the other highest carrying capacity, is 80,000 DWT. While the total load carrying capacity of the Supramax ship following Panamax is 60.000 DWT, the total load carrying capacity of the Handysize ships with the lightest tonnage is 40,000 DWT.

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