Q. The “Baltic Dry Index (BDI)” is often seen in news is related to which of the following?

[A] Crude oil index

[B] Continent shelf measuring index

[C] Precipitation measuring index

[D] Trade and Shipping index

Answer: D

Explanation: The Baltic Dry Index (BDI) is a shipping and trade index created by the London-based Baltic Exchange.

  • It measures changes in the cost of transporting various raw materials, such as coal and steel.
  • Members of the exchange directly contact shipping brokers to assess price levels for given shipping paths, a product to transport, and time to delivery or speed.
  • The Baltic Dry Index is a composite of four sub-indices that measure different sizes of dry bulk carriers or merchant ships: Capesize, Panamax, Supramax, and Handysize.

Source: TMH Ramesh Singh