Shares in Clarksons, the world’s largest shipbroking company, plummeted by more than 20% on Monday following a warning that rising geopolitical tensions are negatively impacting shipping deals.
The London-listed company reported in its 2024 full-year results that freight rates have declined in 2025 due to mounting uncertainty over global trade relations and regional military conflicts. As a result, Clarksons’ stock dropped 20.4% to £35.10 by midday in London, wiping approximately £300 million from its market value and bringing it down to £1.1 billion.
The sharp decline reflects growing investor concerns over U.S. President Donald Trump’s unpredictable foreign policy, which has cast a shadow over global trade since his return to office in January. Uncertainty surrounding his administration’s tariff threats and involvement in the Ukraine and Gaza wars has made traders hesitant to commit to long-term shipping contracts.
Clarksons’ Chief Executive, Andi Case, acknowledged the challenging global climate, stating that the company has begun each financial year with an “uncertain geopolitical outlook” for several years. “2025 has started with more uncertainty than most due to political change, ongoing regional conflicts, increased trade tensions, tariffs and sanctions, inflation, and shifting monetary policy across global economies,” he told investors. He added that these factors have led to a broad decline in freight rates and asset values.
Despite the stock market setback, Case downplayed its significance and instead highlighted Clarksons’ strong financial performance in 2024. The company reported a 6% increase in underlying profits before tax, reaching a record £115.3 million. Under formal accounting standards, pre-tax profits rose by 3% to £112 million. Case expressed pride in the results, stating, “I am incredibly proud to post another set of record results” and reaffirmed his confidence in the company’s future.
Industry experts note that uncertainty over Western sanctions on Russian energy has particularly impacted traders’ willingness to sign oil and gas shipping contracts. In a significant shift in U.S. foreign policy, Trump has recently aligned with Russia while advocating for an end to the Ukraine war, further complicating the outlook for energy shipments.
Amid the turbulence, Clarksons announced it would raise its annual dividend by 7% to 109p per share, underscoring the company’s commitment to shareholder returns despite the challenging market environment.
