Baltic Dry Index set for best quarter since 2011

[LONDON] The Baltic Dry Index, a measure of costs to transport commodities by sea, is poised for its best quarter since 2011 on stronger Chinese demand for imports of Australian iron ore.

The gauge averaged 1,815 so far in the fourth quarter, the highest level since 2011's final three months, according to data from the Baltic Exchange in London. Charter costs for all four of the vessel types making up the index are set for the best quarterly performances in two years.

Australia, the world's largest iron-ore exporter, raised its shipments of the steelmaking raw material to leading global importer China by 19 per cent in the first 10 months of 2013, government data show. The increase helps shipping because the cargo generates more demand than any other dry-bulk commodity and growth is taking place as the fleet's expansion slows.