How do I invest in the Baltic Dry Index?
Indexes are not investable securities, but investors have some choices that offer exposure to the Baltic Dry Index.
- Dry Bulk Shippers. Perhaps the most obvious way to get exposure to the Baltic Dry Index is through the shares of dry bulk shipping companies.
- Commodities Producers.
- Oil.
- Country Funds.
Where is the Baltic Dry Index?
London
The Baltic Dry Index is reported daily by the Baltic Exchange in London. The index provides a benchmark for the price of moving the major raw materials by sea.
What does the Baltic Dry Index ( BDI ) mean?
Baltic Dry Index is a measure of how much it costs to ship raw materials like iron ore, steel, cement, and so on. . . Investors follow BDI as it is a leading indicator that provides a clear view into the global demand for commodities and raw materials. As
How big is the dry bulk shipping fleet?
As of December 2020, the total dry bulk vessel operating fleet was 12,312 vessels, with a cargo capacity of 912.2 million deadweight tons (dwt), according to Drewry Shipping Consultants Ltd. Bulk vessels are identified by size in the following categories since April 2020 (see figures below):
Is the dry bulk shipping market in recession?
9/6/2015 The dry bulk shipping market will remain in recession due to contracting demand for iron ore and coal, and any recovery is not expected until 2017, according to the Dry Bulk Forecaster report published by global shipping consultancy Drewry.
What is the Baltic Exchange iron ore index?
The capesize, which tracks iron ore and coal cargos of 150,000-tonnes, declined 2.3% to 3,018, down for a fifth straight session; and the supramax index dipped 49 points to 2,455. Conversely, the panamax index which tracks cargoes of about 60,000 to 70,000 tonnes of coal and iron ore, rose 1.5% to 2,811. source: Baltic Exchange