| Worldwide cargo shipping is governed by trade | | | | capacity (15,000 to 35,000 tons). |
| regulations existent at the source and destination | | | | Baltic Dry Index offers precise information about the |
| countries. Using the services of an experienced | | | | financial soundness of the marine logistical sector. As |
| shipping firm is the key to timely and error-free | | | | BDI considers raw material exchange through ships, it |
| shipment for client companies. | | | | also indicates the global demand for goods. Thus, BDI |
| Worldwide Cargo Shipping: Baltic Dry Index | | | | assumes great significance as an economic indicator. |
| Worldwide cargo shipping prices are defined through | | | | Worldwide Cargo Shipping: Impact of Free Trade |
| Baltic Dry Index (BDI). It is an international index | | | | Agreement |
| prepared by the London-based Baltic Exchange that | | | | The rules and procedures governing worldwide cargo |
| mirrors the cost of shipping raw materials, such as | | | | shipping varies, as per free trade agreements |
| heavy equipments, iron ore, grains, cement, steel and | | | | prevalent among nations. Conventionally, member |
| coal. The Baltic Exchange obtains quotes for 22 | | | | nations under a free-trade agreement levy less or no |
| major shipping routes from leading transporters, | | | | duty for imports originating among themselves. |
| compiles them and finds the average, called the Baltic | | | | Import rules for non-member nations, however, are |
| Dry Index. For a comprehensive analysis of the global | | | | different. For example, North America Free Trade |
| marine industry, the Baltic Exchange considers all the | | | | Agreement eliminates or progressively reduces import |
| four-sizes of marine transporting vessels. | | | | tariffs among Canada, the US and Mexico. However, |
| - Capemax – Ships that can carry 100,000+ tons | | | | the exemption applies only on goods that are |
| of cargo | | | | qualified under the agreement. There are numerous |
| - Panamax – Ships with a carrying cargo capacity | | | | other free trade agreements among nations that |
| between 60,000 and 80,000 tons | | | | define worldwide cargo shipping procedures and |
| - Handymax - Ships that can carry 45,000 to 59,000 | | | | prices. Thus, thorough knowledge of import |
| tons of cargo. Also called as Supermax. These form | | | | regulations is essential to secure shipment and to |
| the largest fleet of transportation ships. | | | | benefit from tax exemptions. |
| - Handysize – Ships with a limited cargo carrying | | | | |