The level of the Rhine in Germany has fallen to critical levels due to the ongoing heatwave in Europe. As a result, more and more cargo is being diverted to rail and road transport. Companies in the chemical, energy, steel and agricultural trade industries are already warning of higher logistics costs, supply difficulties and the risk of production cuts.
The most serious situation is at Kaub, near Koblenz - a key section for Rhine shipping. The German Federal Waterways Service WSV reports that the navigable depth there has dropped to just 10 centimetres. This is below the previous record low of 25 centimeters, recorded in 2018. The river itself is about one meter deeper than the measured navigable depth, but in these conditions many ships no longer pass through the area for safety reasons.
Ships are sailing at just 20% of their capacity
Shipping continues in the northern reaches of the Rhine, but according to traders, many vessels are sailing at 20% or less of their normal cargo capacity. To transport the same amount of goods, the cargo must be distributed among more ships, which sharply increases transportation costs.
This creates a serious problem for German industry, as the Rhine is a key route for transporting grain, minerals, ore, coal, petroleum products and other raw materials.
Rail and road transport are taking on more cargo
Logistics company Contargo reports that an increasing proportion of cargo is now being transferred to land. The operator is increasing rail services and using additional truck capacity, while terminals on the Lower Rhine are increasingly serving as logistics hubs for container redistribution.
The company emphasizes that decisions on whether a ship can continue sailing are made practically on a day-to-day basis, depending on the specific section and current water levels.
Pressure on German industry
Low Rhine levels are now turning from a climate problem into an economic risk. Restrictions on river transport increase the cost of delivering raw materials and finished goods and can affect manufacturing companies that rely on regular river deliveries.
Chemical companies, energy companies, steelmakers and agricultural commodity traders, which have traditionally used the Rhine as a cheap and efficient transport corridor, are particularly vulnerable.
Drought is becoming an increasingly expensive fallback option
A shift to rail and road transport can temporarily compensate for some of the shortage of river capacity, but it is not a full replacement. Land transport is more expensive and has limitations in terms of available capacity, especially when there is simultaneous high demand from multiple industrial companies.
Therefore, prolonged low water levels could put even more pressure on supply chains and production costs in Germany.
The Rhine remains one of the most important transport arteries in Europe, and the current situation shows how sensitive the German economy is to weather conditions along the river. If the drought continues, companies will be forced to increasingly rely on more expensive land alternatives.