Shares in Clarkson, the world’s largest shipping services provider, tumbled 17.9% to £36.20 on Monday, even as the company reported profits exceeding £100 million for the third consecutive year.

The sharp decline came as Clarkson warned of increasing uncertainty due to tariffs, trade tensions, sanctions, and shifting monetary policies.

Last week, President Donald Trump raised tariffs on Chinese goods to 20%, prompting retaliatory measures from China on U.S. farm products like chicken and soybeans. Additionally, Trump imposed a 25% tax on imports from Mexico and Canada before partially reversing the decision with temporary exemptions under the USMCA trade agreement.

Clarkson’s CEO, Andi Case, noted that 2025 had “started with more uncertainty than most,” leading to lower freight rates and asset values.

Despite these challenges, Clarkson’s underlying pre-tax profits climbed 6% to a record £115.3 million in 2024, aligning with its previously upgraded guidance. As a result, the FTSE 250 firm raised its annual dividend by 7% to 109 pence per share—marking 22 consecutive years of increases.

Revenue rose 3.4% to £661.4 million, driven by supply chain disruptions and ongoing conflicts affecting key trade routes. Attacks by Houthi militants in the Red Sea have significantly reduced traffic through the Suez Canal, forcing many operators to reroute vessels around the Cape of Good Hope, adding 10 to 14 days to shipping times. Meanwhile, the Russia-Ukraine war has contributed to longer voyages as oil and gas shipments are diverted away from Russia toward alternative suppliers for Europe.

These disruptions have fueled record-high freight rates in the specialised tanker market and strong pricing in the container sector.

Looking ahead, Case acknowledged the uncertain geopolitical landscape, stating, “The resolution or continuation of these events during the year will create potential headwinds and tailwinds for our performance as we support clients through this complexity.”

However, Case himself has faced criticism from shareholders over his compensation. He received a £12 million pay package in 2023—nearly three times the FTSE 100 CEO average of £4.2 million and surpassing earnings of executives at major firms like HSBC and Reckitt Benckiser.