Determinants of Freight Rates: A Study on the Baltic Dry Index

Abstract

The aim of this study is to find out the determinants of the Baltic Dry Index (BDI) which is published by the Baltic Exchange in the period of 2003-2016 by a multiple OLS regression analysis. For this purpose, the most important factors that are considered to have an impact on BDI, are analysed by the help of E-views 9.0 program thereby establishing optimum model. Empirical findings indicate that phosphate rock and barley have the highest impact on BDI. Additionally, the results of the analysis also showed that, while crude oil prices which is the core cost factor has positive effect on the BDI, cement and maize prices have significant but negative effects.

Keywords

• baltık kuru yük endeksi
• navlun fiyatları
• temel yükler
• çoklu regresyon analizi
• denizyolu ticareti
• baltic dry index
• freight rates
• freight rates
• main bulks
• multiple regression (ols) analysis
• seaborne trade