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2011 August 25   09:05

Clarksons profit drops 8 percent in H1

Clarksons, the world’s largest shipbroker, saw its first half pretax profit fall 8 percent to $22.3 million from the same period a year ago, largely due to lower freight rates and an unfavourable U.S. dollar exchange rate, the Journal of Commerce reports.

 

The London-based shipping services group’s revenue fell 12 percent to $145 million within the same period, partly because it shed its loss-making logistics business.

 

“Given the scale of reduction in freight rates across many markets and exchange rate pressures… these results, while lower than the previous year, represent a good achievement,” said CEO Andi Case.

 

Shipbroking made a $24 million profit on revenue of $122 million in the first half, down from $34 million and $138 million, respectively, compared with the same period a year ago. The division boosted its market share with higher transaction volumes, largely offsetting reduced freight rates and the impact of a weaker U.S. dollar.

 

Clarksons said the container market was impacted by historically high deliveries of new ships and a near total reactivation of idle fleet in the first half of the year.

 

But the medium-term outlook is “ still strong” with the fleet requiring additional tonnage in most sectors for the next two to three years, and while building activity has been much stronger, it is still limited by finance and end user commitments.

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