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Rhine River freight costs have sharply increased due to falling water levels, with vessels forced to operate at less than 50% capacity.
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Freight rates for tanker ships from Rotterdam to Karlsruhe surged from €46 to €80 per tonne in just one week, more than doubling since late March.
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Low water levels are forcing cargo to be split among multiple vessels, significantly raising transportation costs and logistical complexity.
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Rain is forecast from Saturday through Thursday in southern Germany, which could offer temporary relief by improving river navigability.
Freight transport along the Rhine River in Germany has become significantly more expensive this week, according to commodity traders. Declining water levels have forced vessels to carry less than half their normal capacity, according to Reuters.
While freight movement continues, loads are being split across more vessels, leading to higher shipping expenses. The logistical workaround helps maintain cargo flow but adds complexity and cost for cargo owners.
Freight Costs Surge Amid Shallow Waters
Rates for tanker freighters transporting goods from Rotterdam to Karlsruhe have climbed to approximately €80 per tonne, up from €46 last week and just €34 in late March. Traders attribute this spike to reduced loading volumes and surcharge demands from vessel operators, who must account for the diminished cargo capacity due to shallow river conditions.
Southern Rhine Severely Affected, Including Kaub Chokepoint
The entire Rhine River south of Duisburg and Cologne, including the key transit hub of Kaub, is experiencing navigational challenges. A prolonged lack of rainfall in March and April has exacerbated the situation, causing severe restrictions for bulk carriers of grains, ores, minerals, and petroleum products.
“Instead of one vessel, you now need several to deliver the same load,” explained one grain trader. “This is naturally more expensive, and vessel operators charge extra to offset the smaller load sizes.”
Hope on the Horizon: Rain Forecast for the Coming Week
There is cautious optimism, as repeated rainfall is forecast from Saturday through Thursday in southern German river catchment areas. While the German transport ministry has stated that the situation is not yet classified as an extreme low-water event, it expressed hope that mid-April rains would help stabilize conditions on the Rhine.
Strategic Waterway for German Industry at Risk
The Rhine is a critical logistics corridor for Germany, transporting essential commodities such as coal, oil products, minerals, and agricultural goods. During the 2022 drought, similarly low water levels severely impacted industrial supply chains, causing production delays and shortages.
The current shipping disruptions serve as a stark reminder of the ongoing vulnerability of inland waterways to climate fluctuations. The maritime and logistics sectors remain hopeful that the upcoming rainfall will bring much-needed relief.
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Source: Reuters
