Baltic Dry Index
The Baltic Dry Index is an index which gives the average price of shipping material on a daily basis.
It is an indicator of the cost of shipping materials across the world.
The Baltic Dry Index is used as an indicator of the economy.
It indicates the demand for transporting materials. If the index is at a high value it means that there is high demand for shipping raw material. This in turn implies that production would go up since raw material is the basic input for production. On the other hand if the BDI goes down it means that demand is falling and this implies slowing economic activity which could be a signal for recession.
The index is maintained by the Baltic Exchange.
The Baltic Dry Index is made up of an average of the following indices
- Baltic Supramax
- Panamax
- Capesize
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