Baltic Dry Index

Baltic Freight Index (BFI) was launched in 1985 and was used to settle
trades on Baltic International Freight Futures Exchange (BIFFEX). The
Baltic Dry Index (BDI) was launched in 1999 and is a successor to the BFI.
The BDI is a composite of the Dry Bulk Timecharter Averages.
The following formula is used to calculate the BDI:
(Capesize5TCavg + PanamaxTCavg+ SupramaxTCavg + HandysizeTCavg)/
4) * 0.110345333
TCavg = Time charter average
BDI measures the demand for shipping capacity versus the supply of dry
bulk carriers. The BDI is termed as a leading economic indicator as it
predicts future economic activity. Data for BDI calculation is obtained from
panels of independent ship brokers around the world giving their
professional judgement within the parameters of the route they have been
asked to assess.
The ship owners and charterers are not allowed to make assessments and
all the brokers providing assessments are audited to ensure they are
fully active on the trades they are assessing. The shipbrokers should
not have money in the market.