A sustained heat wave across Western Europe has led to a significant drop in water levels on Germany’s crucial Rhine River, severely disrupting shipping operations and driving up freight costs for cargo owners.
Impact on Shipping Operations
Shallow water depths mean that vessels are unable to sail fully loaded. As a result, vessel operators are forced to impose surcharges on freight rates to compensate for the reduced cargo capacity. This directly translates to higher costs for cargo owners, who often need to charter additional vessels to move consignments that would normally fit on a single barge. While cargo is still being delivered, it’s now being carried by multiple vessels instead of one, adding to the logistical burden and expense. Low water has limited shipping on all of the river south of Duisburg and Cologne, particularly at the critical choke point of Kaub, where cargo vessels could only sail about 50% full as of late June 2025. At Duisburg and Cologne, vessels are operating at 40-50% capacity.
Heatwave and Drought Conditions
An intense heatwave is currently gripping parts of Germany, including the Rhine area. Temperatures as high as 40 degrees Celsius (104 degrees Fahrenheit) are possible in Cologne this week. Traders indicate that no immediate improvement in water levels is in sight, and levels could potentially fall further. This follows a concerning trend: March 2025 was the driest March ever recorded in Germany, with water levels in the Rhine at Cologne measuring about half the usual level by early April 2025. Dry soil conditions across much of Europe are contributing to dwindling river flows.
Historical Precedent
The current situation echoes the summer of 2022, when a similar drought and heatwave led to unusually low water levels on the Rhine. That period caused significant supply bottlenecks and production problems for German companies, underscoring the vulnerability of the industrial heartland to disruptions on this vital waterway.
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Source: Reuters
