Current interest by Soviet charterers intaking 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.
 Reuter
