Decades-Old Freight Index Gets Revamp
- Smallest vessel types no longer part of Baltic Dry Index
- Move is a response to investor interest in a tradeable index
A panamax container ship at Hamburg port.
Photographer: Krisztian Bocsi/Bloomberg
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The Baltic Dry Index, a decades-old measure of shipping costs viewed by some investors as a leading economic indicator, is getting a makeover.
The measure will now get its heaviest weighting from giant Capesize ships that haul iron ore and coal, while the smallest Handysize carriers are removed altogether. The alterations follow interest from exchange traded funds and family offices about the creation of a global freight benchmark in which they could invest, said Stefan Albertijn, Chair of the Baltic Index Council.