Baltic Dry Index Baltic Freight Index (BFI) was launched in 1985 and was used to settle trades on Baltic International Freight Futures Exchange (BIFFEX). The Baltic Dry Index (BDI) was launched in 1999 and is a successor to the BFI. The BDI is a composite of the Dry Bulk Timecharter Averages. The following formula is used to calculate the BDI: (Capesize5TCavg + PanamaxTCavg+ SupramaxTCavg + HandysizeTCavg)/ 4) * 0.110345333 TCavg = Time charter average BDI measures the demand for shipping capacity versus the supply of dry bulk carriers. The BDI is termed as a leading economic indicator as it predicts future economic activity. Data for BDI calculation is obtained from panels of independent ship brokers around the world giving their professional judgement within the parameters of the route they have been asked to assess. The ship owners and charterers are not allowed to make assessments and all the brokers providing assessments are audited to ensure they are fully active on the trades they are assessing. The shipbrokers should not have money in the market.
Baltic Freight Index (BFI) was launched in 1985 and was used to
settle trades on Baltic International Freight Futures Exchange
(BIFFEX). The Baltic Dry Index (BDI) was launched in 1999 and is a
successor to the BFI. The BDI is a composite of the Dry Bulk
Timecharter Averages.
The following formula is used to calculate the
BDI:(Capesize5TCavg + PanamaxTCavg+ SupramaxTCavg +
HandysizeTCavg)/ 4) * 0.110345333TCavg = Time charter average
BDI measures the demand for shipping capacity versus the supply
of dry bulk carriers. The BDI is termed as a leading economic
indicator as it predicts future economic activity. Data for BDI
calculation is obtained from panels of independent ship brokers
around the world giving their professional judgement within the
parameters of the route they have been asked to assess.
The ship owners and charterers are not allowed to make
assessments and all the brokers providing assessments are audited
to ensure they are fully active on the trades they are assessing.
The shipbrokers should not have money in the market.
