Baltic Dry Index (BDI)
An index that tracks the price of transporting dry bulk cargo like cement, coal, iron ore, and grain on bulk freighters. As many of these commodities are raw materials that go into production of finished goods, the BDI is often taken to be an indicator of economic growth and production. The index is maintained by the London-based Baltic Exchange.
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University