The previous year marked the hottest on record globally, with natural catastrophe losses surpassing US$100 billion for the fifth consecutive year, as reported by reinsurer Swiss Re. According to the Financial Times, 37 extreme weather events in 2024 each caused losses exceeding US$1 billion, and projections suggest that insured losses could potentially double in the next decade.
Disruptions to Inland Waterways in Europe
In Europe, disruptions to cargo transport via inland waterways have been increasing. In June, the Rhine River faced severe weather, with torrential rain triggering major flooding in southern Germany. This caused significant disruptions to cargo handling, particularly affecting transport to and from Switzerland, and led to extensive delays in inland traffic along the Lower and Upper Rhine.
Challenges to River Navigation Due to Climate Change
Neil Dalus from TT’s Loss Prevention Department highlighted that “Climate change effects on river navigation are significant as it is highly sensitive to changes in weather patterns and long-term climate trends.”
“This challenge highlights the vulnerability of Europe’s inland waterway transport system, emphasizing the need for infrastructure improvements, planning for risk mitigation and workforce training to ensure operational resilience.”
Drought Conditions and Reduced Water Levels
In addition to flooding, drought conditions have caused record-low water levels on major rivers. In response, some vessels have been forced to operate at just 25% of their usual load capacity to avoid running aground, resulting in even more delays. To maintain connectivity between industrial regions and ports, many shipping lines have turned to rail transport as an alternative.
Weather-Induced Losses and Operational Challenges
TT’s historical data shows a clear trend of increasing claims related to weather-induced damages over the past decade, including navigational accidents, equipment failures, crane collapses, container stack blowovers, and flooding of buildings and infrastructure. Dalus further notes that uninsured and consequential losses can be financially devastating: “As a result of operational delays reputational damage can occur. Emergency supplies and additional labour costs can accrue and increased maintenance, training and management downtime have to be factored in.”
Building Climate Resilience in Inland Waterway Operations
In response to the rising risks associated with climate change, TT is working to raise awareness among inland waterway operators about these growing threats. The focus is on developing effective loss-prevention strategies to mitigate the costly impacts of weather-related incidents, ensuring a resilient future for inland waterways.
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Source: Container News
