Clarksons, the global shipping brokerage leader, saw its operating profit for the first half of the year surge to a record £64.8 million (approximately $87 million), a 55% increase from the same period last year. The company, founded in 1852, also reported a nearly 40% revenue jump to £413.5 million (about $555.5 million).
CEO Andi Case attributed this growth to shifts in global supply chains caused by the Iran conflict, which heightened demand for services like those offered by Clarksons. As a third-party broker, Clarksons connects shipping owners, such as Maersk, with cargo owners like retailers. In a statement released Monday, Case said the company's first-half performance reached a historic high, driven by ongoing investments in core operations and extreme market volatility from geopolitical disruptions, including the Strait of Hormuz situation. He expects the group's full-year results to significantly exceed market forecasts.
Case added that shipping disruptions have "significantly impacted the global shipping market," forcing trade route reconfigurations and causing a period of operational turmoil, which subsequently pushed up freight rates and hedging transaction volumes. Data from shipping analytics firm Kpler shows a sharp decline in vessels transiting the Strait of Hormuz since the conflict began in February. Before the conflict, over 100 ships passed through the waterway daily; now, only about 33 do so.
The spillover effects include the blockade of Saudi shipping near the Bab el-Mandeb Strait by Yemen's Houthi rebels. Additionally, Ukrainian drone strikes on Russia have paused shipping activities to and from Black Sea ports, halting key grain export routes. The cascading supply chain disruptions have placed immense pressure on sectors like aviation and agriculture. Jet fuel prices have soared, and the Strait of Hormuz blockage has caused shortages of key fertilizer inputs, straining agriculture. Amid these challenges, shipping service firms like Clarksons have found opportunities.
Jean-Paul Rodrigue, a professor of maritime business administration at Texas A&M University at Galveston, explained that any market disruption creates a zero-sum game, where some participants lose while others gain equally. "When markets are disturbed, some lose, and others win by the same amount," he said.
Why Clarksons Is Reaping Rewards from Geopolitical Turmoil
Rodrigue attributed the ship broker's record profits to simple supply and demand dynamics. The reduced number of vessels transiting the Strait of Hormuz has increased demand for third-party brokers like Clarksons, which help retailers connect with available ships. Like all brokers, Clarksons earns commissions from transactions, so higher shipping costs lead to increased commission revenue.
"Geopolitical instability inevitably disrupts markets," Rodrigue said. "It creates uncertainty, clouds information, and leaves no one sure of the next move. That uncertainty amplifies the value of these firms, as market participants urgently seek professional assistance." However, uncertainty does not always yield high returns. In March 2025, ahead of the Trump administration's high tariffs and amid the ongoing Russia-Ukraine conflict, Clarksons had warned that trade tensions would negatively impact its revenue.
Yet, the Iran conflict has had the opposite effect. According to data from the International Rescue Committee, shipping freight rates near the Strait of Hormuz nearly quadrupled in the first two months of the conflict, primarily due to skyrocketing insurance premiums for transiting the area. Rising operating costs and market demand have created significant opportunities for firms like Clarksons. "Market participants are just acting rationally," Rodrigue noted. "As the market structure shifts, supply and demand naturally change, and those on the winning side benefit."
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