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Shares in Clarksons, the world’s biggest shipbroking company, fell by more than 20 per cent on Monday after it warned that geopolitical tensions were hitting shipping deals.
The London-listed company said when announcing its 2024 full-year results that freight rates had fallen in 2025 in the face of increasing uncertainty over international trade relations and regional military conflicts.
The company’s shares were down 20.4 per cent at lunchtime in London, at £35.10. The sell-off sent the market value of Clarksons, which brokers deals between shipowners and traders so benefits from higher demand for trade, down by about £300mn to £1.1bn.
The decline is the latest market reaction to Donald Trump’s erratic foreign policy interventions, which have clouded the outlook for global trade since his return to the White House in January.
Amid the uncertainty over the US president’s tariff threats and interventions in the Ukraine and Gaza wars, traders have hesitated to commit to long-term shipping deals.
Andi Case, chief executive, told investors on Monday that the company had “for some years now” started each new financial period with an “uncertain geopolitical outlook”.
He added: “2025 has started with more uncertainty than most due to political change, ongoing regional conflicts, increased trade tensions, tariffs and sanctions, inflation and changing monetary policy across global economies. [The] impact of these uncertainties is that freight rates and asset values have broadly fallen.”
Case downplayed the significance of the share price fall and instead expressed pride at the results for 2024. The company said it had recorded underlying profits before tax for the year up 6 per cent to a record £115.3mn. Underlying profits are profits before exceptional items and acquisition-related costs.
Under formal accounting rules, pre-tax profits were up 3 per cent to £112mn.
Case said he was “incredibly proud to post another set of record results” and “extremely confident about the position of the company”.
Shipping industry leaders have said traders are particularly reluctant to sign contracts for oil and gas shipments amid uncertainty over the future of western sanctions on Russian energy. In a significant shift in US foreign policy, Trump has recently sided with Russia as he pushes for an end to the Ukraine war.
Clarksons said it would increase its annual dividend by 7 per cent to 109p per share.
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