zoom Newbuilding orders of tanker ships have seen a sharp reduction, but the slowing trend needs to be sustained for the longer-term health of the market, global shipping consultancy Drewry said in its Tanker Forecaster.After numerous orders in recent years, newbuilding activity in the tanker market declined sharply in the first quarter of 2016 as only 34 vessels (2.6 million dwt) were ordered during the period, far below the hefty 368 vessels (45 million dwt) ordered in 2015.“Challenging conditions in capital markets and tight credit availability from banks have subdued new ordering. Although this will not arrest the strong fleet growth and corresponding decline in freight rates over the next two years, as many vessels are scheduled to be delivered in 2016-17, it bodes well for the future, especially if this is a reflection of cautious ordering by owners,” Drewry said.However, Drewry believes that if the current decline is just a breather after the hefty ordering in 2015, when owners increased orders to avoid stringent Tier III regulations for the vessels ordered from 1 January 2016, any increase in ordering in the coming months would hurt the longer-term outlook for the tanker market.Despite the slowdown in ordering in the first quarter of the year, the total orderbook remains high at 63.7 million dwt, 18.6% of the crude tanker fleet. About 80% of the vessels in the orderbook are scheduled to be delivered in the next two years, and we expect more than 200 crude tankers to be delivered by the end of 2017.“Newbulding prices declined during the quarter on account of the slowdown in tanker ordering, which coincided with weakness in newbuilding activity in other sectors as well, keeping prices under pressure. If ordering remains weak in the coming quarters, newbuilding prices could soften further,” said Rajesh Verma, Drewry’s lead analyst for tanker shipping.“The tanker market is expected to be oversupplied in the next two years due to hefty deliveries and relatively slow growth in the crude oil trade. If the slowdown in ordering continues further it will keep fleet growth in check in the later years, which in turn will support tonnage utilisation in the tanker market,” added Verma.
TORONTO — The Toronto stock market was higher Friday as U.S. job creation data for January and big revisions for the previous two months raised hopes that indexes can build on the gains netted during the first trading month of the year.The S&P/TSX composite index gained 74.69 points to 12,759.93 while the TSX Venture Exchange was ahead 7.26 points to 1,228.97.The U.S. Labour Department’s non-farm payrolls report said the American economy created 157,000 jobs last month. It also significantly revised upward the number of jobs created in November and December. The Labour Department said that a total of 127,000 more jobs were created than initially thought.The jobless rate rose 0.1 of a point to 7.9%.The Canadian dollar was down 0.16 of a cent to 100.11 cents US, after the loonie closed above parity on Thursday for the first time in a week.U.S. indexes were sharply higher as the Dow Jones industrials ran ahead 82.36 points to 13,942.94.The Nasdaq gained 18.56 points to 3,160.69 while the S&P 500 index rose 7.65 points to 1,505.76.Expectations had varied for job creation, ranging from 155,000 a week ago and rising as high as 170,000 in the last couple of days.The positive jobs reading helped reassure investors who were surprised at data released Wednesday showing the U.S. economy shrank in the fourth quarter at an annualized rate of 0.1%.The TSX is up a shade over 2% for the month while the Dow industrials has jumped about 5.75% as corporations delivered some better than expected earnings reports, U.S. politicians stopped the economy from going over the so-called fiscal cliff and agreed to an extension of the debt limit. And there were signs that China’s economy is reviving.BlackBerry, the company formerly known as Research In Motion Ltd. was up 23 cents or 1.78% to $13.15 after tumbling 17% over the past two sessions following the rollout of its new BlackBerry 10 lineup. Part of the reason for the slide is profit taking after the stock ran up 50% during January alone, and up 200% from its 52-week low of $6.10 in September. But availability has become an issue as U.S. customers won’t be able to get the BlackBerry Z10 until March, a month later than in Canada.In earnings news, Barbie maker Mattel Inc.’s fourth-quarter net income fell 17% to $306.5 million, weighed down by a litigation charge. Removing the litigation charge, earnings were $1.12 per share, three cents short of analyst expectations.Mattel’s revenue rose five% to $2.26 billion against expectations of $2.15 billion. Its stock was ahead 1.7% in pre-market trading.Exxon Mobil said fourth-quarter earnings rose six% to US$9.95 billion with help from higher profit margins in its refining business. Net income equalled $2.20 per share, compared with $1.97 per share a year earlier. Revenue was down five% to $115.17 billion,Analysts expected Exxon Mobil Corp. to earn $1.99 per share on revenue of $115.22 billion and its shares were off 50 cents to US$89.46.Its publicly traded subsidiary, Imperial Oil, reported higher net income in the fourth quarter as lower expenses more than offset a decrease in revenue. Imperial said its net income in the latest period was $1.07 billion or $1.26 per diluted share. That was just above last year’s $1.01 billion, or $1.18 per diluted share. Revenue fell to $7.8 billion from $8.1 billion and its shares dipped 15 cents to $43.65.Montreal-based paper maker Domtar Corp. said quarterly net income dropped to US$19 million or 54 cents per share in the three months ended Dec. 31, down from US$61 million, or $1.63 per share, in the fourth quarter of 2011. Domtar’s revenue fell about $70 million to $1.33 billion. Adjusted earnings dropped to $46 million or $1.31 per share, nine cents below expectations and Domtar shares fell $1.84 to $81.16.The gold sector led TSX advancers, up about 1.5% as April bullion on the New York Mercantile Exchange was up $20.10 to US$1,682.10 an ounce. Goldcorp Inc. improved by 55 cents to $35.68.The base metals sector gained 1.3% while March copper was unchanged at US$3.73 a pound. Teck Resources was ahead 36 cents to $36.71.Rail stocks advanced alongside mining stocks with Canadian Pacific Railway up 63 cents to $115.78.The energy sector climbed 0.4% with the March crude contract down 79 cents to US$96.70 a barrel. Suncor Energy advanced 23 cents to $34.13.Financials also provided lift as National Bank moved up 65 cents to $79.97.European bourses advances as three pieces of economic news for the 17 European Union countries that use the euro were all slightly better than hoped.Unemployment was lower than feared in December, though still at uncomfortably high levels; a survey raised hopes of some growth in the manufacturing sector; and inflation unexpectedly fell, raising speculation of more help from the European Central Bank.London’s FTSE 100 index gained 0.76%, Frankfurt’s DAX was up 0.52% while the Paris CAC 40 climbed 1.07%.Earlier in Asia, stocks were mixed after manufacturing data from China fell short of expectations. Industrial production is still growing, but at a slower pace, according to the government-sanctioned China Federation of Logistics and Purchasing. Its manufacturing index for January fell to 50.4 from 50.6 in December on a 100-point scale in which numbers above 50 indicate expansion.Hong Kong’s Hang Seng fell marginally, South Korea’s Kospi dropped 0.2%, Australia’s S&P/ASX 200 gained 0.9%.Japan’s Nikkei 225, meanwhile, was once again energized by the yen’s continued descent against the dollar. The index rose 0.5%.