German container shipping line Hapag-Lloyd reported a 50 per cent fall in nine-month net profit to EUR846 million (US$989 million) and cut its full-year earnings forecast, citing volatile markets and higher costs, reported New York's Marine Link.

The company now expects full-year earnings before interest and taxes of EUR500 million to EUR1 billion, trimming the upper end from the EUR200 million to EUR1.1 billion range announced in August.

Chief executive Rolf Habben Jansen told analysts the group must maintain strict cost discipline. He said initial savings are emerging from the Gemini alliance with Maersk on East-West trades, with further benefits expected in 2026.

Shares fell 4.6 per cent in midday trading, with the company's free float at just 3.6 per cent.

Transported volumes rose nine per cent to 10.2 million TEU in the January-September period, but transport costs climbed 10.8 per cent to EUR10.5 billion.

Average freight rates dropped 4.8 per cent to US$1,397 per TEU over nine months, despite a 5 per cent quarter-on-quarter rise in the third quarter.

Chief financial officer Mark Frese said freight rates remain under pressure and volume growth is slowing, adding that the final weeks of the year will be critical.

Nine-month EBIT fell 55 per cent year-on-year to EUR809 million.