SOVIET TIMECHARTERING BOOSTS GRAIN FREIGHT RATES

  Current interest by Soviet charterers in
  taking Panamax vessels on timecharter, mainly from the U.S. To
  carry grain, is seen as the chief factor behind the recent
  surge in values on the Baltic International Freight Futures
  Exchange (BIFFEX), dealers said.
      Futures soared through the 1,000 points barrier today for
  the first time in the spot position since the market opened in
  May 1985. However, the market tends to be nervous, with values
  some 100 points above the Baltic Freight Index, which is
  calculated on spot physical rates.
      No specific figure has been put for Soviet bookings but
  they have been sufficient to drain Panamax tonnage (about
  50,000 to 65,000 tonnes dw) from the U.S. Gulf which would
  normally operate on the trip to Japan, dealers said.
      "It appears that the Chernobyl disaster had a worse effect
  on its (the Soviet) grain harvest than reported," one said.
      Freight rates on the Gulf/Japan grain route have
  subsequently been the main beneficiary of current chartering
  conditions, with very few, if any, Panamax sized ships left for
  the remainder of this month in the Gulf. Rates have risen
  steadily for vessels loading next month.
      Dealers said there is even talk that owners are considering
  taking older vessels out of lay-up to meet current demand.
      Sentiment has also been aided by suggestions that Chinese
  operators may be in the market for similar timecharter business
  later in the year, they said.
      They anticipate this would appear around June and it has
  prompted keen demand in the July BIFFEX contract, despite it
  normally being a slack time in the shipping year.
      Market sentiment has fluctuated in recent weeks. Rates
  turned down as an earlier rise in bunker prices, which had
  supported the market at the start of the year, faltered but
  then recovered on the reported Soviet interest.
  

