An economic indicator that measures the average cost of shipping dry bulk raw materials such as coal, iron ore, and grain across major global sea routes. Published daily by the London-based Baltic Exchange, the BDI aggregates rates for four vessel classes: Capesize, Panamax, Supramax, and Handysize. Because shipping demand reflects real orders for physical commodities, the index is widely regarded as a leading indicator of future global economic activity and industrial production.
Example
“The Baltic Dry Index surged 30% in two weeks, suggesting a pickup in Chinese steel production as iron ore shipments from Australia increased sharply.”