Low Water Levels In Germany’s Rhine River Disrupt Shipping & Increase Freight Costs
Low water levels on Germany’s Rhine River due to a heatwave in western Europe have hindered shipping on the vital maritime waterway.
Freight costs have risen for cargo owners due to extra surcharges since ships are not able to sail fully loaded.
Commodity traders are stressed as low water levels have limited the shipping on the entire stretch of the river, south of Duisburg, Cologne and the maritime chokepoint at Kaub.
In the above-mentioned places, ships can sail at just 40 to 50% of their capacity.
The shallow water levels have caused ship operators to increase freight rates to compensate for not being able to fully load their vessels, and the requirement for more ships to transport cargo, which increases costs for cargo owners.
The Rhine is a principal shipping route for minerals, grain, ores and also carries coal, oil, such as heating oil and other cargo.
A heatwave is expected to hit several parts of Germany this week, including the Rhine, as temperatures reach around 40° Celsius (104° Fahrenheit) in Cologne.
The water levels could continue to decrease in the coming days, said the traders.
Companies faced supply and production issues in 2022, after a heatwave and drought led to low water levels on the River Rhine.
References: Reuters
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