Water levels on the Rhine river are dwindling further, with no relief in sight, forcing companies that rely on the waterway to adjust rapidly to keep goods flowing.Levels at Kaub, Germany — the Rhine’s shallowest point — have fallen to the lowest since records began in 1880, and could drop further as another heat wave bakes Europe this week. Forecasters say it would take weeks of sustained rain to lift the river toward more normal levels, meaning the crisis could drag on into October.
The Rhine is a key shipping route through Europe’s industrial heartland, from Switzerland to Rotterdam, the continent’s busiest port. The disruption along the waterway is throwing up supply chain challenges for companies ranging from steelmaker Thyssenkrupp AG to BASF SE and Lanxess AG.
“Shipments by ship are severely restricted, with vessels carrying significantly lighter loads than usual,” specialty chemicals maker Lanxess said Tuesday in response to questions from Bloomberg. “As certain loading and unloading points are no longer accessible, we are switching to rail and road transport where possible. The situation is highly dynamic.”
While the river never officially closes, some in the industry — including shipping broker Riverlake — are already warning that it has effectively become impassable at Kaub.
“Barges positioned on the Upper Rhine are unable to return to the ARA region,” Riverlake said in a note Tuesday, referring to the Antwerp-Rotterdam-Amsterdam hub. “Barges from the ARA are unable to proceed further upstream.”
The disruption puts at risk supplies of commodities that are typically carried along the waterway, ranging from diesel, heating oil and coal to grains and cocoa. German utility EnBW normally relies on shipments of coal which arrive from Rotterdam, while Germany’s Miro oil refinery exports gasoline on barges. EnBW on Friday estimated that the disruption on the Rhine will reduce its earnings by a low double-digit-million-euro figure.
“The Rhine’s low water levels are restricting inland shipping capacities and posing major challenges for logistics and supply chains,” chemicals firm Evonik Industries AG said Tuesday. The company is reacting “with extensive precautionary measures and is shifting a part of its freight transport to rail and road.”