Turbulence in the shipping lanes of the Middle East opened the way for London shipbroker Clarkson to up its profit forecasts today, with more vessels being chartered as transport firms avoid the Red Sea.
Attacks there on ships from Houthi rebels in Yemen have increased after the war in Gaza. Longer voyages to avoid the flaring trouble has boosted wider demand in the industry, with ships taking longer journeys without using the Suez Canal.
Diversions away from the area, taking traffic around Africa instead, typically add over 3,000 miles to voyages between Asia and northern Europe. That lifts the typical length of time at sea to 40 days from 31 on the route, a crucial conduit for world trade,
The increase in the cost of transport means shipping firms usually order more vessels, keeping brokers like Clarkson busy.
The St Katherine’s dock firm did not refer specifically to the crisis in the Middle East today. But it said “strong trading throughout the final quarter” of 2023 meant that its results for the year “are now anticipated to be ahead of current market expectations,” with underlying profit before tax of at least £108 million.
It reported half-year profit of over £53 million in August, when it left guidance for the year unchanged. Its results are due in March.
Shares in the 172-year-old company headed north, adding 270p to 3524p, a rise of over 8% and the biggest single gain on the FTSE 250.
