Panamax markets behaviour: explaining volatility and expectations

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The Baltic Dry Index is affected by the relevant dry bulk markets' indices in weighting, with the Baltic Panamax Index contributing at a very high weighting, increasing from 25 to 30% since January 2018; as a result, the Panamax shipping market plays a critical role in international trade. The economic perspective of this industry is affected by the micro-and macro-global changes, specifically by the changes in volume and frequency of dry bulk commodities. For example, the first wave of the Covid-19 pandemic led the world economy to lockdown with a bull expected market. However, companies with Panamax ships managed to react and recover due to the Panamax market structure's nature. Dry companies operating in this market do so in a flexible economic environment with various cargoes available under open competition. As a result, the companies need to adapt to new changes such as regulations (emissions control