Low Rhine water cuts cargo loads to a third, hitting German industry
Why it matters: Freight rates for some petroleum shipments have jumped to 200 euros a tonne, above the 2022 record, as factories scramble for alternatives.
Water levels on the Rhine have fallen sharply after heat and drought, restricting shipping on one of Europe’s busiest trade arteries and adding pressure to Germany’s weak economy. In Duisburg, vessel loading capacity has dropped to about one-third of normal, forcing more port calls and a shift to smaller ships, rail and road. The Rhine carries about 80% of Germany’s inland waterway traffic and roughly 285 million tonnes of goods a year, linking industrial hubs to Rotterdam. BASF, Thyssenkrupp and Covestro all rely heavily on the river, with Covestro saying disruptions are already affecting supply and output at some sites. Transport Minister Steffen Bilger is due to meet industry and shipping executives in Bonn on Aug. 6 as calls grow to deepen parts of the river.