From 1 March the Baltic Dry Index (BDI) will be re-weighted to reflect 40% capesize, 30% panamax, and 30% supramax time charter averages, dropping the handysize time charter average.
The Baltic said external research showed that the contribution of the various vessel types to the dry bulk market was 40% capesize, 25% panamax, 25% supramax and 10% handysize, and that dropping the handysize component from the BDI made not statistical difference to the BDI.
Mark Jackson chief executive of the Baltic Exchange commented that over the years the composition of the index had changed to reflect the underlying market. “The new weightings are simply the next phase of development in this process.”
While planned move has caused controversy in the market Jackson said: “We have listened carefully to feedback from Baltic Exchange members and the majority were enthusiastic about the changes and the opportunities it offers."
While handysizes will no longer be a component of the BDI the Baltic will continue to report on the size and in November 2017 it launched a trial of a new Handysize Imabari 38 benchmark vessel and seven time charter routes.