Dry weather has led to persistently low water levels on Germany’s Rhine River, continuing to disrupt cargo shipping. Although recent rainfall has caused a slight increase in water levels, the improvement remains limited, according to commodity traders.
Shipping is being affected along the entire stretch of the river south of Duisburg and Cologne, including the critical bottleneck at Kaub.
Currently, cargo vessels can typically operate at only about half capacity. However, deliveries are still being made by using multiple ships to transport loads that would normally be carried by a single vessel, traders noted.
There has been a marginal increase in the cargo volumes vessels can carry, they added.
Due to shallow waters, shipping companies are applying surcharges to freight rates to offset losses from underutilized vessels, raising costs for cargo owners.
Forecasts predict some rainfall in the Rhine’s catchment areas over the next week, which may at least stabilize water levels and prevent further declines, traders said.
The Rhine serves as a vital transport route for commodities such as grains, minerals, ores, coal, and oil products—including heating oil.
In the summer of 2022, German companies experienced supply disruptions and production challenges after drought and extreme heat caused historically low water levels on the river.
Source: Reuters (Reporting by Michael Hogan; Editing by Mark Potter)
