Shipping prices may be heading higher but are `not super yet,` analysts say

Shipping rates may be rising, but they are [not super yet," according to one analyst.

Dry bulk shipping rates surged this year as the global economy bounced back and commodity demand recovered, but some market watchers say the industry may not be headed for a sustained period of robust growth just yet.

[Is it a supercycle? Well, I would say not yet, but it has the potential to become one," said Mark Williams, managing director of Shipping Strategy, a maritime consultancy.

A so-called supercycle refers to a sustained period of high and increasing prices, typically driven by strong demand and low supply.

He said rates for capesize vessels - the largest category of ships that carry dry cargo and raw materials such as grain, iron ore and coal - are around the levels seen in mid-2019. Reuters reported on Tuesday that average daily earnings for capesizes were $31,880 - a jump of more than 10 times the figure of about $3,000 in February last year.

The Baltic Dry Index, which tracks rates for vessels that carry dry bulk commodities, gained about 74% from the start of the year to July 3.

[It`s good - (but) really, it`s not super yet," he said during a panel discussion at TradeWinds` Shipowners Forum Singapore 2021 earlier this month.