MAERSK's forwarding arm Damco reported yet another quarterly net loss of US$68 million after a $1 million profit in the prior year period, drawn on this year's quarterly revenue of $848 million up 1.4 per cent.
"We are not giving up just because we have had a tough time, but we need to fix it," Maersk Group CEO Nils Andersen told Lloyd's List.
Damco, he said, had forgotten to keep costs down and focus on the market, while significant one-off costs were putting additional downward pressure on the quarterly result.
For the first nine months, Damco reported a loss of $110 million, compared with a $1 million loss for the first nine months of last year.
Ocean freight volumes declined seven per cent while air freight volumes fell 16 per cent year on year compared to a five per cent market growth for sea freight and four per cent growth for air freight this year.
But Damco Supply Chain Management volume growth continued, rising 14 per cent year on year.
"Despite a one per cent increase in revenue, Q3 2014 displayed a declining and unsatisfactory gross profit development," said a company statement.
"Overhead costs, particularly salaries, and related costs are reflecting the ongoing saving initiatives, however significant one-off costs are putting additional downward pressure on the quarterly result," said the group.
Additional costs of restructuring initiatives and process changes have "proven more complex than anticipated", said the company, adding that one-off costs were "mainly impairment on intangibles of US$30 million.
"The restructuring initiatives are still expected to strengthen commercial competitiveness and get Damco back to profitable growth in 2015 and onwards," said the group statement.