Danish oil and shipping giant A P Moller-Maersk reported an 82 percent drop in third-quarter net profit as continued growth in shipping capacity and unfavourable world economic developments continue to squeeze freight rates.

Net profit fell to US$304.7 million in the three months to September 30 from $1.71 billion a year earlier, reported the Wall Street Journal.

Sales in the quarter fell one percent to $15 billion, from $15.09 billion.

Maersk, which operates the world's largest container shipping company Maersk Line, said it now expects the container business to make a loss for the full year, down from a previous expectation of a moderately positive result.

The company also lowered the forecast for its retail activities, excluding divestment gains, forecasting a result below that of 2010.

On a group level, Maersk maintained its forecast for a full-year result "lower than the 2010 result".

"The outlook for 2011 is subject to uncertainty, not least due to developments in the global economy, oil price and global trade conditions," Maersk said.