What is the Baltic Dry Index?

The Baltic Dry Index is a measure of the shipping costs for transporting dry goods such as iron ore, coal, and grains across the oceans. It is seen as a leading economic indicator that reflects the demand for raw materials and supplies by major economies. The index derives its name from the Baltic Exchange in London, where the index was first created in 1985. It is computed daily by the Baltic Exchange and is widely used by traders, shipping companies, and economists as a proxy for globalization and international trade. A higher index value indicates higher demand for shipping and usually signals positive economic sentiment, while a lower value indicates lower demand and negative sentiment in the market.

This mind map was published on 27 June 2023 and has been viewed 94 times.