The Baltic Dry Index is an index that indicates the trend of costs for maritime transport and rental of the most important categories of ships “dry bulk cargo”, for those carrying “dry” material and bulk. While it would seem limited to data reported in the Baltic Sea, in reality BDI gathers data related to the most important world routes expressed in U.S. dollars.
The Baltic Dry Index is important because it reflects the level of demand/supply of raw materials cited and anticipates the trend of prices: For this reason it is an excellent indicator of the trend of the signals of a particular economic environment. When the BDI drops, analysts and international organizations such as the WTO have serious concerns for the global economy, while a rise in tariffs is a positive sign.
According to many analysts in recent times the validity of this index to predict the fate of the economy is less than in the past. In fact, over the last decade, the Baltic Dry has become an indicator of more and more “Chinese”, as the Asian giant dominates the maritime trade of raw materials.
By Nicole P.