Baltic Dry index falls 144 points

The Index has declined more than 8 percent

On Oct 1, 2020, the Baltic Dry Index registered a 144-point, or 8.4 percent, increase to 1,869 points, which is the Index's lowest value since June 17, reports Portnews.

BDI is an index reflecting changes in the cost of shipping raw materials: metal, iron ore, coal, and grain. The index includes three other freight value indexes that differ in the size of the vessels for which they are calculated. The dynamics of BDI changes allow investors and market participants to analyze the main trends in global supply and demand.

The index is often seen as the main indicator of future economic growth (if the index is growing) or recession, because the raw material on which the index is calculated has low potential for speculative transactions.