BIMCO: Implementing The BDI Adjustment Program From March 1st

- Apr 04, 2018-

The Baltic Shipping Exchange (BIMCO) issued an announcement a few days ago. After consultation with member companies, the Baltic Exchange will implement the previously announced Baltic Dry Index (BDI) adjustment program.

From March 1, 2018, the weighting of the time period rent assessment in the BDI calculation will be adjusted as follows: Haitang type accounts for 40%, Panamax and Supramax type each takes up 30%, and handy-time timed rent evaluation will be calculated from BDI. Remove it.

Mark Jackson, chief executive of the Stock Exchange, stated: "If BDI's predecessor, the Baltic Freight Index (BFI), is taken into consideration, the history of BDI can be traced back to 1985. Just like other comprehensive indices, Reflecting market changes, the components of BDI have also been adjusted several times in the past, and this move is no exception. It is an effort to make BDI more widely reflect the transaction mode of the dry bulk market and enter the next stage of development. 1. We listened to the feedback from numerous wave exchange members and most companies showed great enthusiasm for this adjustment and the potential opportunities they may bring.” RF Flange

Stefan Albertijn, chairman of the Baltic Index Council (BIC), commented: “In the past few years, both commodity and financial circles have had a lot of interest in using BDI for trading. We are on BDI-based exchange-traded funds (Exchange Traded Funds, ETF) is optimistic about the outlook and is confident that BDI will continue to maintain its status as a market leader in dry bulk shipping.”

External studies have shown that the dry bulk shipping market has 40% of sea bream types, 25% Panamax, 25% hypersoul and 10% handy. The results of this analysis are based on the composition of the fleet, the operational status of the vessel including no-load, the total cargo volume based on the import and export reports, and the ship AIS data. The weights of the BDI will also be reviewed annually. In terms of BDI calculations, there is no statistical difference in the removal of hands-on weights and the use of the above-mentioned actual market weights.

The Baltic Exchange is still evaluating the hands-on market. It also began commissioning in November last year to release a hands-on index based on the Imabari 38 ship type.