According to the Baltic Exchange, the index tracking transport costs on international trade routes rose by 185 points or 4.5%, to 4,291, a 23rd straight gain and the longest climb since July 2006.

Rates for capsize ships rose by 6.8% to USD 93,197 a day. Smaller panamaxes increased by 5.3% to USD 28,110.

Mr Jim Wong analyst with Nomura Holdings Inc said that "Speaking to industry contacts, we sense the BDI is likely to continue to rebound in the near term, driven by continued demand for iron ore as well as congestion in China’s ports."

Chinese purchases of iron ore have increased as the government spends CNY 4 trillion on housing, transportation and other projects to support the country’s economy. Imports of the material rose to a record for a third consecutive month in April 2009.

(Sourced from www.livemint.com)