JINHUI Holdings Ltd, a Hong Kong-based owner of bulk ships, said it will buy a vessel that can carry coal, grain and other commodities for US$59 million as China's rising demand for raw materials pushes up rates.

The so-called Supramax 53,470-deadweight-ton vessel, being constructed at an unidentified Japanese shipyard, will be delivered in November, Jinhui said in a Hong Kong stock exchange statement late yesterday. The company is buying the ship from Orix Corp, Japan's largest non-bank finance company.

STX Pan Ocean Co, Pacific Basin Shipping Ltd and other bulk carriers have reported higher earnings as they charge more to move coal, iron ore and other commodities to China and India. Rates may continue to rise for at least two more years, boosted by global demand and port congestion, according to Credit Suisse Group.

Jinhui has 20 vessels on order with deliveries slated as far as 2012, the company said.

The Baltic Dry Index, a benchmark for the price of shipping bulk commodities, has almost doubled during the past 12 months. It reached a record 7,319 on August 16, according to the Baltic Exchange in London.