Hapag Lloyd booked profits of just EUR3.2m ($3.4m) in Q3, as freight rates drop and the boost from its December merger with CSAV’s container arm CCS begins to normalise.

Despite reversing its fortunes after losses of EUR50.7m in Q3 2014, the lean third-quarter profit is a major slowdown from the EUR157.2m booked in the first half of 2015.

Shoring up the result, Hapag Lloyd’s IPO generated less than expected, amounting to a total of $300m despite the initial target of $500m.

However, Hapag Lloyd reports that its transport expenses per container have decreased by $240 to $1,111 per teu in the first nine months of 2015, thanks to the low price of bunker fuel as well as cost efficiencies since the merger.

“We are satisfied with our results for the first nine months of 2015, given the very challenging market environment”, said Rolf Habben Jansen, Hapag-Lloyd ceo. “The third quarter proved once more that the merger with CSAV was the right step and that our cost reduction measures are making us competitive. With the proceeds from the IPO, we will be able to invest in the future to further improve efficiency and profitability.”