Clarkson shares sink on weaker freight rates, asset values

(Sharecast News) - Shares in shipping broker Clarkson slumped 20% on Monday as US trade tariffs, political tensions and economic weakness resulted in lower freight rates and asset values, hitting spot business. Underlying pre-tax earnings rose 6% to £115.3m in line with upgraded guidance published in January, while revenue was up to £661m from £639m. The company lifted guidance in a trading update last January.

However, chief executive Andi Case said Clarkson had started each new financial period for several years with an "uncertain geo-political outlook", with the war in Ukraine destablising energy supplies and global inflation affecting trade flows.

"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, which has meant that the value of spot business done to date is less than the same period last year."

Case said fundamental supply and demand dynamics were in fine balance last year, with underlying trade volume growth and disruptions to trade patterns increasing demand, while the supply side remained challenged by low order books in certain sectors and a tight shipbuilding market.

"The opportunity before us remains significant, as commodity demands combined with energy security and environmental factors, provide a complex backdrop for market growth in the medium term."

"However, following a year of extensive political change, ongoing conflicts in the Middle East and Russia-Ukraine, adding further complexities, markets have softened as economies grapple with the immediate impacts of this phase of change."

AJ Bell investment director Russ Mould said the company "looks to be a victim of Donald Trump's trade war before it has got fully underway".

"It's also bad news for so-called star fund manager Nick Train who has suffered multiple years of underperformance with the Finsbury Growth & Income investment vehicle. Clarkson is one of the recent additions to the portfolio and today's 15% share price slump doesn't put the investment off to a good start."

Reporting by Frank Prenesti for Sharecast.com