Baltic Exchange dropping handysize bulkers from BDI

The Baltic Exchange is dropping handysizes from its key dry bulk market index the BDI.

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.

Posted 1 February 2018

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Marcus Hand

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Editor, Seatrade Maritime News Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with nearly two decades of experience covering the shipping industry in Asia. In addition to running Seatrade's maritime and offshore news website based from Singapore he is the Asia Editor of Seatrade Maritime Review. Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Prior to joining Seatrade at the beginning of 2010 Marcus worked for shipping industry journal Lloyd's List for a decade and previous to that the Singapore Business Times covering shipping and aviation.

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