Low water levels after recent dry weather are preventing cargo vessels from sailing fully loaded on the Rhine river in Germany, with cargo owners facing higher transport costs, commodity traders said on Thursday (April 3).
Extreme lack of rain in March and April means low water is hampering shipping on all the river south of Duisburg and Cologne, including the chokepoint of Kaub, with levels falling again this week, traders said.
Shallow water means vessel operators impose surcharges on freight rates to compensate for vessels not sailing fully loaded, increasing costs for cargo owners. Consignments must be shipped by several vessels instead of one, also raising costs.
Market prices for a tanker freighter sailing from Rotterdam to Karlsruhe rose to about 46 euros a tonne of cargo on Thursday from 34 euros ($37.41) last week.
Dry weather again forecast for the next week in river catchment areas means that no improvement is in immediate sight.
The Rhine is an important shipping route for commodities such as grains, minerals, ores, coal and oil products, including heating oil.
(Reuters)
