Platts, part of S&P Global Commodity Insights, the leading independent provider of information, analysis, data and benchmark prices for commodities, energy and energy transition markets, launched on November 1, 2023, the Platts Dry Index (PDI), a new combined dry bulk freight industry marker derived from weighted average time charter equivalent indices reflecting the Capesize, Panamax/Kamsarmax, Ultramax and Supramax segments.
This is the first dry bulk composite index in more than three decades to be priced in dollars per day, reflecting the freight paid for hauling various commodities across 35 major routes where Capesize, Panamax/Kamsarmax, Ultramax and Supramax ships ply.
Platts Dry Index
The Platts Dry Index captures the demand for moving widely consumed dry bulk commodities such as grains, coal, chrome, copper, manganese, nickel, iron ore, steel, alumina, bauxite and spodumene. It is based on trade flow volumes accrued on various dry bulk segments and provides an indicator of the performance of the global dry bulk shipping market, bringing transparency to this critical shipping sector.
With the new Platts Dry Index, freight market participants and financial investors with exposure to daily changes in dry bulk shipping prices now have the option of trading a basket of routes incorporating all vessel segments.
Peter Norfolk, Global Head of Freight Pricing, S&P Global Commodity Insights, said, “Following the disruption of global trade flows caused by the Russia-Ukraine conflict and the re-mapping of supply chains due to the Covid-19 pandemic, the freight market is in dire need of an index that reflects the current reality. In addition, dry bulk is the largest sector in the maritime industry that impacts almost every aspect of the economy. The Platts Dry Index – a unique dollars per day index that encompasses the Capesize, Panamax/ Kamsarmax, Ultramax and Supramax segments, offers market participants a reliable marker reflecting present-day global trade flow volumes.”
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