Baltic Exchange applies changes to BDI

The Baltic Exchange will be implementing changes to the Baltic Dry Index (BDI) from March 1.

The BDI will be reweighted to the following ratios of time-charter assessments: 40 per cent Capesize, 30 per cent Panamax and 30 per cent Supramax, and will no longer include the Handysize timecharter average.

“The Baltic Exchange has been publishing the Baltic Dry Index (BDI) in various forms since 1985 when it started life as the Baltic Freight Index (BFI),” said Baltic Exchange Chief Executive Mark Jackson.

“Like any aggregate index, its composition has changed over the years to reflect changes to the underlying market. In our case this means ensuring that the BDI broadly reflects dry bulk global trading patterns.

“The new weightings are simply the next phase of development in this process.”

External research concluded that the contribution of the various dry bulk vessel types to the dry bulk market was 40 per cent Capesize, 25 per cent Panamax, 25 per cent Supramax and 10 per cent Handysize.

This analysis was based on the fleet composition, vessel utilisation including ballasting and total cargo moved – based on 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.

The Baltic Exchange will continue to report the Handysize vessel market and in November, as part of the ongoing review of its indices, launched a trial of a new Handysize Imabari 38 benchmark vessel and seven time-charter routes.

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