German Industry Output at Risk as Heat Wave Dries Up Rhine River
Dry weather is forcing barges to cut loads, with Thyssenkrupp and BASF among firms facing higher transport costs and supply delays, analysts said.
- Low water levels on Germany's Rhine river are disrupting logistics and raising cargo transport costs, adding pressure to the country's fragile economic recovery, analysts said on Tuesday.
- Heatwaves and reduced rainfall this summer in western Europe caused water levels at the Kaub bottleneck near Koblenz to fall below 50 centimetres on Tuesday, forcing cargo ships to sail about 20% full.
- Thyssenkrupp Steel told Reuters it reduced blast furnace production at its Duisburg plant due to restricted raw material supply, while BASF SE increased ships in service to manage reduced capacity.
- Bloomberg Economics analyst Martin Ademmer warned that prolonged low water could weigh on industrial output, while European Central Bank Executive Board member Isabel Schnabel cited the Rhine as an inflation risk.
- A 2018 dry spell cost Germany about 0.4% of output, according to the Kiel Institute for the World Economy, complicating government efforts after the 2026 growth forecast was halved to 0.5% due to Middle East conflict.
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14 Articles
The water level of the Rhine is currently falling steadily. Chemical and energy companies have prepared for this – but transport costs are rising.
The level of the Rhine has fallen to 97 centimetres in Cologne. This slows down cargo ships and pollutes the logistics of the region.
Here you will find information on the topic "Ship Traffic". Read now "Low Levels: Navigation on the Rhine Is Impaired".
German Industry Output at Risk as Heat Wave Dries Up Rhine River
Germany’s manufacturing sector is at risk of disruption as dry weather again hampers shipments on the country’s most important inland waterway, clouding the outlook for a revival of Europe’s biggest economy.
There is a severe drought in Western Europe and it is already starting to affect the rivers. In Germany, the Rhine has fallen to a level where it is making shipping difficult. The drought is also affecting other rivers. The Ahr has so little water that it does not even flow into the Rhine.
The low water level of German rivers is increasing the economy – despite early warning systems. For customers and drivers, prices are likely to rise soon. This is not the only consequence – paradoxically, even more ships are currently on the road.
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