What does Baltic index indicate?
Most directly, the index measures the demand for shipping capacity versus the supply of dry bulk carriers. The demand for shipping varies with the amount of cargo that is being traded or moved in various markets (supply and demand).
How do you trade the Baltic Dry Index?
Perhaps the most obvious way to get exposure to the Baltic Dry Index is through the shares of dry bulk shipping companies. These are the companies contracted by commodities producers to move goods by sea. As such, profit and revenue at these companies is largely a function of how the Baltic Dry Index is performing.
What is the Baltic Capesize Index?
The index is a composite of three sub-indices that measure different sizes of dry bulk carriers: Capesize, which typically transport iron ore or coal cargoes of about 150,000 tonnes; Panamax, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes; and Supramax, with a carrying capacity between …
Why is the Baltic Dry index so low?
The broader Baltic Dry Index, which tracks global shipping rates, fell to 466 on Monday, its lowest level in four years. The recent drop in freight rates also comes as a consequence of a slowdown in China’s domestic logistics.
Why is the Baltic Dry index so high?
(Montel) The Baltic Dry Index (BDI) – a bellwether for global dry freight rates – has surged to a 19-month high, underpinned by heightened iron ore export activity but coal prices were little affected, market participants said on Tuesday.
Why was the Baltic dry index so high in 2008?
Two key drivers of the BDI have undergone significant shifts since the index peaked in 2008: the supply of cargo ships and the Chinese economy. When shipping prices and shipping demand were higher not too many years ago, more cargo ships were ordered to meet the demand.
WHO publishes the Baltic Dry Index?
Baltic Exchange
What is Freightos Baltic index?
The Freightos Baltic Daily Index measures the daily price movements of 40-foot containers in 12 major maritime lanes. It is expressed as an average price per 40-foot container. This index is the world’s only ocean container pricing index that is reported daily.
What is the Baltic Dry Index BDI and why is it an important leading economic indicator?
BDI is an index which is comprised with the cost of shipping major raw materials and which tracks brokered price quotes for moving goods from around the world. Why BDI is thought as a good economic indicator by many economic authorities is because its nature of real-time updates without any speculation.
What affects Baltic Dry Index?
The demand that affects the Baltic Dry Index is the demand of commodity buyers who need the raw goods for production. It is difficult to manipulate or distort demand because it is calculated solely by those who have placed orders to have raw goods shipped.
What is the business confidence index?
Definition of. Business confidence index (BCI) This business confidence indicator provides information on future developments, based upon opinion surveys on developments in production, orders and stocks of finished goods in the industry sector.
What is Capesize 5TC?
The Capesize 5TC Average Index is basically the weighted average of 5 different routes around the world. The weightings are not equal, but are predefined as follows (definitions adjusted for simplicity): 25% represents the daily roundtrip earnings for ships in the Australia to China route.
What is the size of Capesize vessel?
Capesize vessels are the largest dry bulk marine option, measuring roughly 230m to 270m long with a draft of 17m and nine cargo holds. Due to their larger size, only a few ports can accommodate them while fully loaded. Their carrying capacity is between 110,000 and 200,000 DWT.
What is wet freight?
Objectives. A Wet or Dry Freight Futures contract (henceforth “Freight Future”) is a cash settled derivative contract based on a financial index only giving rise to the payment or liability to payment of the outturn of an average index price against the traded value of the commodity contract (“Index or Assessment”).
What is dry bulk in shipping?
A dry bulk commodity is a raw material that is shipped in large unpackaged parcels. The commodities, which can include grain, metal, and energy materials, are transported long distances in bulk by sea in large cargo vessels by companies that specialize in dry bulk delivery.
What are the 5 major cargoes of dry bulk shipping?
In 2013, dry bulks remained the mainstay of dry- cargo trade, with the five major bulk commodities (iron ore, coal, grain, bauxite and alumina, and phosphate rock) accounting for 44.2 per cent (2.92 billion tons) of the total volume of dry cargo and minor bulks (forest products and the like) making up 21.0 per cent ( …
What is the dry bulk industry?
Dry bulk shipping refers to the movement of significant commodities carried in bulk: – the so-called major bulks (such as iron ore, coal, grain), together with ships carrying steel products (coils, plates and rods), lumber or log and other commodities classified as the minor bulks.
What is dry bulk operations?
Dry cargo market is served by shipowners of bulk carriers. Ships in the dry cargo market may be classified according to ship size (deadweight capacity). Several types of bulk cargoes are carried in bulkers (dry cargo ships). Major dry bulk cargoes: Iron Ore.
Who is liner in shipping industry?
Liner shipping is the process of transporting goods and cargo from one destination to another by large ocean ships that move through regular routes on fixed schedules. There are more than 400 liner services in operation today. Most of these liner services provide weekly sailing from the ports of call.