Low Rhine levels begin to disrupt German industry
Germany is facing growing industrial disruption as historically low water levels on the Rhine restrict the transport of chemicals, fuel, grains and raw materials. The prolonged drought is creating supply bottlenecks and sharply increasing freight costs.
The Rhine is one of Europe’s most important commercial waterways, carrying huge quantities of goods to and from Germany’s industrial heartland. But weeks of extreme heat and limited rainfall have left ships unable to carry their normal loads, forcing companies to find alternative ways to move essential materials.
The situation is already affecting major industrial companies. Chemical manufacturer Covestro has declared force majeure for some products, while Evonik’s site in Marl has received reduced cargo deliveries. Steelmaker Salzgitter and agricultural trader RWZ are also turning to road and rail transport, despite the higher costs and limited capacity of these alternatives.
RWZ said it has been shipping less than 10% of its usual volumes during peak months because of the low water levels. The company warned that conditions could become even more difficult if significant rainfall does not arrive by October.
The problem is particularly severe around Kaub, a key bottleneck on the Rhine. Water levels there have fallen to extremely low levels, making it increasingly difficult for cargo vessels to navigate safely and economically. Some shipping operators have already stopped sailings in parts of the river.
The crisis is also pushing transportation costs higher. Companies that normally depend on the Rhine are being forced to shift cargo to trucks and trains, but Germany does not have enough spare capacity to easily replace the river’s enormous transport network. Businesses therefore face higher logistics bills as they compete for alternative transport.
Germany has experienced similar problems during previous droughts. In 2022, exceptionally low Rhine levels caused supply bottlenecks and production problems for German companies. Industry leaders now fear that increasingly frequent periods of extreme heat and water shortages could turn low-water disruptions into a long-term structural challenge for the country’s economy.