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.