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Shares of Clarksons, the world’s largest shipbuilder, fell more than 20% on Monday as geopolitical tensions warned that shipping contracts were struggling.
When the London-listed company announced its full-year results for 2024, it said freight rates fell in 2025 in the face of increased uncertainty over international trade relations and regional military conflicts.
The company’s shares fell 20.4% at lunchtime in London to £35.10. The sale sent Clarkson’s market value. Brokers deal with shipowners and traders, so they benefit from higher demand for trade, ranging from around £300 million to £1.1 billion.
This decline is the latest market response to Donald Trump’s volatile diplomatic intervention, clouding global trade prospects since returning to the White House in January.
Amidst the uncertainty regarding the threat of tariffs and intervention of the US president during the Ukrainian and Gaza wars, traders hesitated to commit to long-term shipping transactions.
The CEO Andy case told investors on Monday that the company began a new accounting period with “a few years” and “an uncertain geopolitical outlook.”
He added: “2025 began with most uncertainty due to political changes, ongoing regional conflicts, increased trade tensions, tariffs and sanctions, inflation, and changes in financial policies across the world economy. () The impact of these uncertainties is a significant decline in freight rates and assets.”
The lawsuit downplayed the importance of the stock price and instead expressed pride in the 2024 results. The company said it had increased 6% before tax that year to record profits, recording a record £115.3 million. The underlying profit is the profit before exceptional items and acquisition-related costs.
Under formal accounting rules, pre-tax profits increased 3% to £112 million.
Case said he is “very proud to post another record result set” and “very confident in the company’s position.”
The shipping industry leader has said traders are particularly reluctant to sign contracts for oil and gas shipping, amid uncertainty regarding the future of Western sanctions on Russia’s energy. In a major shift in US foreign policy, Trump recently sided with Russia to end the Ukrainian war.
Clarksons said it would increase its annual dividend from 7% per share to 109p.
