CEO's review 2025

2025 was a year that tested the resilience and adaptability of the global shipping industry like few before it. I am immensely proud of, and deeply grateful to, my colleagues across the world for their unwavering commitment and exceptional contributions during a period of extraordinary complexity and, accordingly, opportunity.

Throughout 2025, shipping markets were buffeted by a series of material geo-political shocks and economic headwinds. The imposition of new tariffs, ongoing sanctions and regional conflicts disrupted established trade routes and increased complexity across the sector.

Despite these challenges, seaborne trade remained resilient growing by 1.1% to 12.9bn tonnes. The uncertainty affecting market sentiment in the first half of the year eased to some extent as the year progressed, supported by increased trade volumes, a demand for commodities and stronger energy markets. As in previous years, the industry’s ability to adapt, using longer trade routes and innovative solutions, ensured the continued flow of goods worldwide. The resilience of seaborne trade activity, even in the face of uncertainty, underscores the critical role shipping plays in the global economy.

Lack of clarity of outlook in the first half of the year, arising from tariffs, changes in global priorities and the announcement of USTR, contributed to a 27% reduction in newbuilding orders by CGT in 2025. It was however an active year for newbuilding deliveries, up 6% to 43.8m CGT. The global fleet grew by 3.5%, weighted towards container, LNG and PCC vessels. Although slightly down compared to 2024, prices for newbuild vessels remain at elevated levels driven by high labour costs and strong forward cover.

The evolving sanctions environment created complexity for shipping markets during 2025. This has further continued into 2026, with nearly 1,000 vessels in the global tanker fleet currently sanctioned. These challenges provided some support for shipping markets in 2025, increasing both tonne-miles and operational complexity. Clarksons’ regional expertise and global insight enabled us to support our clients in navigating these complexities with confidence and clarity.

Although regulatory momentum around sustainability and green initiatives slowed in some regions as governments’ priorities and perspectives shifted, the green transition remained in focus for our clients as the industry continues to invest in green technologies. Regulatory pressure to effect change is expected to return, and Clarksons is proactively investing in long-term solutions.

2025 saw our Broking division make significant strides in both market reach and product innovation, with a focus on growing our presence across both physical and derivative platforms to deliver integrated solutions to clients.

Despite a challenging first half, marked by extreme caution in the market due to global political and economic uncertainty, the second half saw renewed momentum across all segments as larger market participants re-entered the market and transactional activity increased. Dry bulk and energy markets rallied in the second half of the year, driven by increased demand, new cargoes on longer-haul routes out of Latin America and Africa and a reversal of OPEC+ supply cuts. Although asset market activity in newbuilding and sale and purchase declined from the elevated levels of 2024, the team remained fully engaged throughout the year, leading the market in successfully executing mandates across all major sectors.

Throughout the year, we made significant investment in our broking capabilities, strengthening our presence across multiple regions through new hires and personnel relocation into the Middle East, Europe, Asia Pacific and the Americas. The acquisition of EuroAmerica Shipping & Trade, Inc. (since renamed Clarksons EAST LLC) at the start of the year provided access to a new market segment in fulfilling freight contracts with US government agencies across multiple shipping markets. South America is also emerging as an increasingly important region for business; a trend reflected in the continued expansion of our Brazil office.

We also strengthened our freight and commodity derivatives business through targeted investments and strategic appointments in London, Dubai and Singapore.

Our continued investment in all areas of broking is underpinned by its robust performance across market-cycles and by the strength of our forward order book (‘FOB’), which now extends for almost 20 years and provides substantial visibility over future earnings. Operating profit from the Broking division during the year was £93.9m (2024: £122.6m).

The Financial division delivered a record performance in 2025, supported by a resilient and increasingly active capital markets environment. Debt capital markets were particularly strong and buoyed by several sizeable transactions. The team also remained active across M&A and equity mandates, advising clients across all major sectors and demonstrating both their expertise and long-standing relationships.

Our Project Finance shipping business experienced a good inflow of projects and mandates towards the end of the year supported by improving investor sentiment. In addition, the Group completed the buy-out of the minority interest in the shipping and offshore business during the first half of the year.

The Real Estate business continued to demonstrate resilient levels of activity despite an evolving and cautious market environment. Looking ahead, expectations for this area are positive as the interest rate environment improves, which should stimulate deal activity and investment across the sector.

The Financial division reported operating profit of £12.9m in 2025 compared with £5.2m in 2024.

Our Support division encountered a more challenging year, impacted by delays in offshore wind and energy projects, particularly along the UK coastline. Market conditions are expected to improve as projects progress, although this remains contingent on UK government energy policy.

Activity in Northern Europe was more encouraging, with the Group entering into a strategic 10-year agreement with a major client to support their port operations, logistics and maintenance activities.

Throughout 2025, ongoing disruption to Suez Canal transits continued to pose challenges for our Agency business in Egypt. Despite this, the team worked diligently to support clients and is well positioned to benefit once activity returns to more normal levels.

The division continues to invest in broadening its capabilities across the offshore oil and gas, marine and renewable energy sectors, and is well positioned to meet clients’ needs globally as market conditions and demand evolve.

The Support division delivered operating profit of £4.8m in 2025 (2024: £7.7m).