Baltic Dry Index (BDI): What It Is and How to Read It
The Baltic Dry Index, or BDI, is a daily measure of what it costs to move the main dry bulk cargoes by sea. Traders and analysts follow it as a sign of world trade.
What the BDI is
The Baltic Dry Index is published every working day by the Baltic Exchange in London. It is built from assessments that a panel of shipbrokers gives for the main dry bulk routes and ship sizes, and combines the results of the Capesize, Panamax and Supramax markets. The index started in the 1980s with a base value of 1,000 points. It is a number of points, not a price in dollars per tonne.
What it measures
The BDI measures the market for ships that carry dry bulk cargo: iron ore, coal, grain, bauxite and other raw materials. When there are many cargoes and few free ships, the index rises. When there are many empty ships, it falls. The sizes inside the index are described in our guides to Capesize, Panamax and Supramax ships.
Why it moves a lot
The supply of ships changes slowly, because a ship takes years to build, while the demand for cargo can change quickly with steel production, harvests and the weather. Small changes in demand can therefore move the freight a great deal. The index also reacts to port congestion, canal and route changes and the price of fuel.
What it does not tell you
The BDI is an overall indicator. It does not give the freight for your cargo on your route, your dates or your ship size, and it does not cover tankers or the smallest ships. Your own freight depends on the route, the cargo and the port conditions; read freight rates explained for the units and the main drivers.
Using the index in chartering
Charterers and ship operators use the BDI to see the direction of the market before they negotiate. For a real quote, post a ship request with your ports, laycan and quantity and compare offers; see how to charter a ship.
Post your ship request
Shipfixing connects charterers and ship operators. We scan for suitable ships. Voyage requests for ships below 10,000 DWT need no signup and no membership.
Related guides
More in glossary
- Voyage Charter
- Time Charter
- Trip Time Charter
- Contract of Affreightment (COA)
- Time Charter vs Voyage Charter
- Laycan
- Laytime
- Demurrage and Despatch
- Notice of Readiness
- Charterer
- Shipowner, ship operator, disponent owner
- Ship broker
- Ship fixing and fixture
- Bulk carrier
- Deadweight tonnage (DWT)
- Bill of lading
- Freight
- Lien
- Off-hire
- Bunkers
- FIO and FIOS
- Cancelling date
- Statement of facts
- Letter of indemnity
- Dead freight
- Lighterage
- Stem
- Subjects
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