Damco's profit collapsed to $1 million in the third quarter of 2013, from $15 million a year ago, driven by higher restructuring and overhead costs.
A.P. Moller-Maersk's freight forwarding and logistics unit booked quarterly revenue of $836 million, against $838 million last time.
"The additional cost mainly relates to programs to adjust the business model for the future," the parent company said in its third-quarter report. "This includes roll out of the new operating system (Air & Ocean) and simplification and consolidation of operational structures in many countries."
The new system will be cascaded to all regions in the coming quarters, which will add significant costs through the first half of 2014, "after which Damco is expected to become more profitable."
The supply chain management business increased volume by 10 percent, but ocean freight traffic declined by 1 percent and air freight shipments slumped 15 percent from the third quarter of 2012, which was impacted by a major project.
Damco booked a net loss of $1 million in the first nine months of 2013, against last year's net income of $50 million.