The Baltic Exchange Dry Index (BDI) is the successor to the Baltic Freight Index (BFI) and first came into operation on 1 November 1999. Until 28 February 2018, this index was a composite of the equally weighted average of the Baltic Capesize, Panamax, Supramax and Handysize Time Charter Averages, which was then normalized via a multiplier of 0.10907849.
Since 1 March 2018, the Index is a weighted average of the Capesize (40%), Panamax (30%) and Supramax (30%) Time Charter Averages which is then multiplied by a multiplier of 0.1.
For the creation of the BDI the following formula is used:
((Capesize 2014 TCavg * 0.4 + PanamaxTCavg *0.3 + Supramax10TCavg *0.3) *0.1)
Where TCavg = Time charter average.
The Handysize Index and Time Charter Average is still reported apart.
The BDI continues the established time series of the BFI that was introduced in 1985. However, users of the index should note that the voyages and vessels covered by the index have changed a great deal over the years so that caution should be exercised in assuming long term consistency of the data.