Baltic Dry Index

The Baltic Dry Index is a daily assessment of charter rates for dry bulk ships carrying iron ore, coal, and grain, used as a gauge of shipping demand.

The Baltic Dry Index is compiled from daily assessments of charter rates across a range of dry bulk shipping routes, covering vessels that carry commodities like iron ore, coal, and grain rather than liquids or containers. It combines rates across different vessel sizes into a single number that moves with the overall balance between dry bulk cargo and available ships.

Because dry bulk shipping demand tracks industrial activity and agricultural trade closely, and new ship supply takes years to build, the index is often read as a rough real-time gauge of global trade volume, rising when trade is brisk relative to available ships and falling when it is not. It reflects shipping costs and ship availability, not the price of the cargoes themselves, so it can move independently of the freight rate implications for any single commodity.