China Shipping Development Co, the nation's biggest oil carrier, said on Tuesday that first-half profit gained 44 percent from a year ago as demand for vessels to transport fuels and metals rose in the world's fastest-growing major economy.

Net income climbed to 3.18 billion yuan (US$463 million), or 0.945 yuan a share, from a restated 2.21 billion yuan, or 0.67 yuan a share, a year earlier, the company said in a statement to the Shanghai Stock Exchange on Tuesday.

Chinese shipping lines have expanded their fleets as economic growth boosted demand for overseas oil, iron ore and other raw materials, Bloomberg News said.

China Shipping will spend 23 billion yuan over the next five years on new vessels to benefit from demand for cargo transport, Chairman Li Shaode said on March 25.

While "China's expected stable economic growth may sustain shipping demand" in the second half of this year, shipping rates for oil products and dry bulk cargoes may be "highly volatile and are at risk of declining," China Shipping said in the statement.

(Shanghai Daily August 14, 2008)