A rally in capesize rates looks set to be short-lived, according to one leading London dry bulk market analyst.

Maritime Strategies International (MSI) describes the current pick up in rates as “frothy”, suggesting that the bubble will burst by the turn of the year.

The warning came as owners saw spot earnings peak at $16,000 per day in November, the highest level since mid-2015.

Will Fray, senior analyst at MSI, says the recent rate rally could be put down to higher commodity prices — including iron ore, coking and steam coal — following a reduction in Chinese stocks.