Multilevel Demand For Sea Transportation. Correlation Between Baltic Dry Index (Bdi) And Coaster Shipping Prices For Sea Routes Between Baltic Seaports And Mediterranean Seaports

Abstract

Baltic Dry Index (BDI) reflects the prices of sea transport performed by Capesize, Panamax, Supramax and Handysize bulk carriers only. The prices of the transport with vessels of smaller tonnage are not considered in the calculation of BDI, therefore principally it should be assumed that BDI does not refer to a tonnage different from the observed. On the other hand, the demand for maritime transport services depends on the state of international trade of goods. Generally, the international market of goods is common for all ship types and tonnages. In the production processes starting from the extraction of raw materials till the sale of finished products to end customers; it can be done by several transport carriages in succession, which provide the intermediate production stages. Transport demand is secondary and depends on international trade, but on the other hand, this demand is multilevel. From an economic point of view, it is important to study the interrelationships between maritime transport providing the intermediate production stages, from the extraction of raw materials till the sale of the final goods.