Baltic Exchange Main Index to Drop Handysize T/C Average
The Baltic Exchange says from March 1, 2018, the Baltic Dry Index, its main sea freight index, which typically factors in rates for capesize, panamax, supramax and handysize shipping vessels, will no longer include the handysize time charter average.
The Exchange furthmore said the index will be re-weighted to the following ratios of timecharter assessments: 40 percent capesize, 30 percent panamax and 30 percent supramax. The contribution of the various dry bulk vessel types to the dry bulk market was 40 percent capesize, 25 percent panamax, 25 percent supramax and 10 percent handysize, as per external research.
"The decision to not include Handysize contributions makes no statistical difference to the calculation of the BDI, based on the above weightings," the exchange said in a statement on Thursday, adding that the exchange will continue to report the handysize vessel market.
Reporting by Arpan Varghese