$CKN.L (Clarkson PLC) Is an asset light high quality shipping business set to compound in value with maritime trade routes being extended in a changing geopolitical environment. Who are they?
Deep dive and video below.
Clarkson Shipping: Navigating Global Waters with Expertise
Clarkson Shipping stands as a paragon of excellence in the maritime industry, with a rich history dating back over 160 years. Established in 1852, this London-based company has evolved to become a global leader in shipbroking and integrated shipping services, offering comprehensive solutions that span the entire maritime spectrum.
At the heart of Clarkson Shipping's business lies its shipbroking division. Renowned for its market-leading expertise, the company connects shipowners, charterers, and traders worldwide, facilitating the chartering, sale, and purchase of vessels. Whether it's bulk carriers, tankers, container ships, or offshore assets, Clarkson Shipping's extensive network and in-depth market knowledge ensure the best outcomes for its clients.
Beyond shipbroking, the company provides a myriad of services, including research, financial analysis, and consultancy, empowering clients with insights that drive informed decision-making. Clarkson Research Services, a subsidiary, is known for its cutting-edge market intelligence and data-driven reports, aiding industry players in navigating the complexities of the shipping market.
My favourite part of the business is its data provision.
For freight forwarders and maritime traders the data clarkson provides is essential to being able to operate. For those wanting information as to the availability of certain vessels, charter lengths and day rates as well as trading routes clarkson is the number one player and a one-stop shop for all the above.
With ROE ave over 10% in the previous decade (a poor one for the shippers) and ave FCF margins of 17%+ percent I believe the business margins can expand even in an inflationary environment due to the co only having 13% of its assets in tangibles.
Take care and all the best.
Benjamin
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