Baltic Dry Index

The Baltic Dry Index is a key barometer of global freight activity – measuring the cost of ferrying raw materials around the planet.

The Baltic Dry Index is a key barometer of global freight activity measuring the cost of ferrying raw materials around the planet. Despite its name, it isn't just about Scandinavia. It's published by London's Baltic Exchange, the global marketplace for buying and selling shipping contracts.

The BDI measures the demand for space on so-called 'dry bulk carriers', which carry cargoes such as coal, grain, timber, steel and iron ore. That makes it a 'leading' economic indicator. Manufacturers need to buy supplies of raw materials before they can churn out finished products. So a pick-up in industrial activity will show up in the BDI - as producers stock up on raw materials - before it appears in the official production statistics.

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