Low Rhine Water Levels Disrupt German Industry

Exceptionally low water levels on the Rhine are disrupting freight transport across Germany, forcing companies to rely on more expensive alternatives and, in some cases, scale back production. The Rhine is one of Europe's busiest inland shipping routes and a vital artery for German industry.

Chemical producers are among the hardest hit. Covestro has declared force majeure on the production of polyether polyols at its Dormagen plant after finding it impossible to fully replace river transport with road and rail. Evonik has also reported disruptions at its chemical park in Marl.

The effects extend beyond the chemicals sector. Energy company Uniper says reduced river flows have cut output at its German hydroelectric plants, while steelmaker Salzgitter has been forced to transport coal from Rotterdam by rail instead of barge.

Agricultural traders are also feeling the impact. Cooperative RWZ normally moves at least 50,000 metric tons of goods from its river terminals in July and August. This year, it has transported less than 10% of that volume and is increasingly relying on more costly road haulage.

Replacing river transport is no easy task. According to Germany's construction industry, a single fully loaded barge can carry as much cargo as up to 150 trucks, highlighting the growing logistical challenges created by the Rhine's historically low water levels.

(Reuters, bak)