Aug. 14 (Bloomberg) -- Cosco Shipping Co., a unit of China's biggest shipping company, said first-half profit jumped 49 percent as it charged more to carry machinery, steel and coal.

Net income climbed to 354.7 million yuan ($47 million), or 0.54 yuan a share, from 237.6 million yuan, or 0.36 yuan, a year earlier, Cosco Shipping said in a Shanghai stock exchange statement today, citing domestic accounting standards. The company, based in the southern Chinese city of Guangzhou, said sales rose 35 percent to 2.45 billion yuan.

China's overall exports rose 27 percent in the first half to $546.7 billion, while imports climbed 18 percent to $434.2 billion. The Baltic Dry Index, a benchmark for the price of carrying coal, iron ore and other commodities, has jumped 60 percent to a record this year.

``Cosco Shipping will continue to gain from the limited capacity for moving machinery and other conventional cargos in the coming year,'' said Li Lei, an analyst at China Securities Co. in Beijing. ``Overall dry-bulk rates will also remain at a high level, given the increasing demand for sea transport.''

Carrying exports accounted for 48 percent of Cosco Shipping's first-half sales and generated 58 percent of its operating profit. About 90 percent of world trade moves by sea.

Cosco Shipping, controlled by China Ocean Shipping (Group) Co., plans to sell bonds to expand its fleet, as the nation's rising trade boosts cargo rates. The company had 85 ships with a total capacity of 1.38 million deadweight tons as of June 30.

Shares of Cosco Shipping have more than doubled this year, outperforming the benchmark CSI 300 Index. The stock climbed 9 percent to 28.29 yuan on Aug. 6, the last day it traded before being suspended pending the bond sale.

To contact the reporter on this story: Jiang Jianguo in Shanghai at jjiang@bloomberg.netIrene Shen in Shanghai at ishen4@bloomberg.net

Last Updated: August 14, 2007 00:51 EDT