Local shipping company Bermuda Container Line has posted a 40 percent jump in profits over the same period last year with net earnings of $2.25 million in the first six months of the year.

But net income ? which was up $642,000 over the same period last year ? is down on the two previous years, the company said in an earnings statement yesterday.

BCL said: "The increased earnings were due to significantly higher cargo volumes carried by both the BCL service from New Jersey and the SISL service from Florida."

The company said cargo volume was up by more than 16 percent for the New Jersey service and up by 18 percent from Florida. This translated into a 17 percent gain of revenues that rose by $2.3 million to $15.7 million from $13.4 million a year ago.

But expenses also rose by 14 percent, or $1.7 million, putting costs at $13.4 million during the half-year period compared to $11.8 million during the first half of 2003.

The higher costs were attributed to stevedoring rate increases, as well as the need to dry dock vessels and charter "expensive replacement ships".

BCL ship 'Oleander' went through a special survey while dry docked and got an "excellent" bill of health, the company said.

For the rest of the year, BCL said the rate of growth in the third quarter had slowed to "below double digits but still healthy".

"At this stage we do expect a good second half and excellent result for the full year," the statement said.