While recent rainfall has brought a slight increase to water levels on the Rhine River in Germany, the improvement has been limited. Commodity traders report that vessels are still operating at significantly reduced capacity, carrying considerably less than half of their full load due to the remaining low water levels, reports Reuters.
Ray of Optimism
The extreme lack of rainfall in March and April continues to cause low water levels that are impeding shipping on the Rhine River south of Duisburg and Cologne, including the crucial chokepoint at Kaub. While freight deliveries are still occurring, the necessity of dividing cargo among more vessels is increasing transportation costs for cargo owners.
Some slight relief came from rain in southern Germany, which raised water levels at Kaub by approximately four centimeters since last Friday. This marginal increase has allowed ships passing Kaub to carry a slightly larger cargo of just over 1,000 metric tons, compared to 870 tons on Friday.
Despite this minor improvement, prices for a tanker freighter traveling from Rotterdam to Karlsruhe remain elevated at about 86 euros per ton of cargo. This is a significant increase from 46 euros in early April and 34 euros in March, highlighting the substantial impact of the low water conditions on shipping costs.
Vessel operators are imposing surcharges on freight rates to compensate for the reduced cargo loads due to the shallow water, further adding to the expenses for cargo owners. The need to use multiple vessels instead of a single one for consignments also contributes to the increased costs.
There is some optimism as more rain is forecast in the German river catchment areas this week and next week, which could potentially lead to improvements in water levels. The environment ministry in the south German state of Rhineland-Palz anticipates that water levels at Kaub will rise by an additional 17 centimeters by Thursday night (April 17, 2025).
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Source: Reuters
