China Shipping Development, the mainland's No2 maritime transport company, expects full-year revenue to climb 20 per cent this year as it rides a wave of surging freight rates for bulk materials and oil. Freight rates for international bulk at the H-share company jumped roughly 300 per cent in the first three quarters of this year - fuelled by rising demand for raw materials from the booming mainland economy, chief financial officer Wang Kangtien said yesterday. The Baltic Dry Index, the benchmark for market freight rates, finished at 4,192 points on Friday, up 173.98 per cent from a year low of 1,530 set in January. The mainland's biggest player, Cosco Shipping, a subsidiary of Cosco Group, has also benefited from rising freight rates. 'China Shipping's rates are in line with the international trend,' Mr Wang said. 'Rates for oil transport have come down from a peak in the first half, but they are still about 50 per cent higher than last year.' The company expected a 20 per cent rise in revenue this year, with freight rates continuing to stay high next year thanks to increasing coal exports and steel and iron imports. China Shipping generated 60 per cent of revenue from its domestic trade, with the rest coming from international business. Of the latter, about 12 per cent of revenue comes from bulk and 28 per cent from oil transport. 'The growth in our international business will stimulate demand on the domestic front. The cake is expanding,' Mr Wang said. ING Financial Markets analyst Lilian Leung said China Shipping would benefit from the cyclical upturn in the industry. 'We expect a gross profit margin of 26.3 per cent this year. But I guess the actual figure will be better than that, helped by high freight rates,' Ms Leung said. China Shipping reported a 28.7 per cent profit margin in the first half. 'The new vessels won't be in place until next year and freight rates will continue to hold until then,' Ms Leung said.