Danish shipping group AP Moller-Maersk has reported a steep drop in profit and revenue in the third-quarter of this year.

The giant operator which has a fleet of more than 700 vessels among them Laura Maersk, has said it would cut 10,000 jobs as it battles with lower freight rates and subdued demand for container shipping.

The Copenhagen based group has kept its full-year guidance for revenue and operating profit but now expects both to land at the lower end of the range.

"Our industry is facing a new normal with subdued demand, prices back in line with historical levels and inflationary pressure on our cost base," CEO Vincent Clerc said in a statement.

"Since the summer, we have seen overcapacity across most regions triggering price drops and no noticeable uptick in ship recycling or idling," he said.

The group which has 65 terminals across 36 countries, had already in August warned of a steeper decline in global demand for shipping containers by sea this year. The reason cited was due to slow economic growth and destocking in the aftermath of the Covid-19 pandemic.

RTE News has more.