The BDI is an index of the Capesize, Panamax and Supramax Timecharter Averages, used by investors as a proxy for shipping conditions, and or world trade.

According to Reuters, BDI touched one month lows on Tuesday, weighed down by declining rates for Capesize and Panamax vessels:

The Baltic dry index, which tracks rates for ships ferrying dry bulk commodities and reflects rates for Capesize, Panamax, and supramax vessels, fell 84 points, or about 5%, to 1,594, its lowest in nearly a month. 

The Baltic Capesize index dropped 221 points, or 7.5%, to 2,729, registering its lowest level since June 17. 

Average daily earnings for Capesizes, which typically transport cargoes of 170,000 tonnes to 180,000 tonnes, including iron ore and coal, was down by $1,834 at $22,635.

However, rising demand for iron ore from China has helped the Capesize segment to gain nearly 40% this year. 

The Panamax index was down 50 points, or 3.4%, at 1,415, its lowest in more than two weeks. 

Average daily earnings for Panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, fell by $452 to $12,736.

However, the supramax index rose 9 points, or 1%, to 929.