Jan
27

Dry Bulk

The Baltic Dry Index measures the cost for shipping dry bulk. This price can fluctuate wildly because supply of large cargo vessels is tight & inelastic. It takes 2 years to build a new ship & excess ships can’t be mothballed like planes. Since dry bulk consists of materials that function as raw materials for intermediate and finished goods such as steel concrete and food the BDI is a leading economic indicator.

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