Shares in the world’s largest shipping broker have dived by nearly a fifth after warning that the shipping market was being rocked by an uncertain geopolitical future marred by global conflicts, trade tensions, and tariffs.
Clarksons, which is listed on the London Stock Exchange, said 2025 had started with even more uncertainty than previous years, amid new tariff plans introduced by US President Donald Trump.
This was causing rates charged by shipping companies to fall over the start of the year, which has brought down the value of deals.
The wars in Gaza and Ukraine “underscore the importance and fragility of global supply chains”, chief executive Andi Case said, with some 1,300 ships around the world subject to sanctions.
This has led to a significant changes in terms of the movement of energy and resources around the world, driving the biggest increase in tonne miles – which measures the movement of cargo – in the sector for 15 years.
Furthermore, the firm flagged the impact of disruption to trade routes across the Red Sea following attacks on ships that began towards the end of 2023.
Traffic through the Suez canal remained at historically low levels in 2024, Clarksons said, although conditions in the Panama canal eased.
The company nonetheless reported an pre-tax profit of £112.1 million for 2024, up slightly on the previous year, with its broking division bolstered by an increase in commodity trade and amid higher shipping costs last year.
“The geo-political outlook remains uncertain as we enter 2025, with ongoing regional conflicts and trade tensions creating uncertainty for markets reflected by freight rates and asset values currently lower than 2024,” Mr Case said.
“The resolution or continuation of these events during the year will provide potential headwinds and tailwinds to the group’s performance as we support our clients through this complexity.”
Shares in Clarksons were down nearly 19% on Monday morning.
