At the critical Kaub chokepoint, the navigable water depth fell to a record 15 centimeters, and barge transport costs have tripled. Germany's economic giants warn of supply chain disruptions and production cuts.
The Rhine, Europe's key commercial artery, was practically brought to a standstill south of Koblenz on Tuesday due to a record-low water level. Germany's Federal Waterways and Shipping Administration (WSV) reported that the navigable depth at Kaub, a critical point near Koblenz, had dropped to just 15 centimeters, the lowest level since records began. At this location, the Rhine is now barely 1.15 meters deep.
"Commercial navigation through Kaub has practically come to a halt, and it is no longer possible to book cargo transport on the Rhine south of Kaub today," said a commodities trader, adding that vessels south of this point could become stranded. Navigation on the northern part of the river continues for now, but cargo ships are carrying only about 20 percent of their usual load.
The drastic reduction in capacity has led to a dizzying rise in prices. The cost of shipping by barge from Rotterdam to Karlsruhe has jumped from approximately 45 euros per ton at the end of June to the current 150 to 160 euros. Shipping companies had already warned on Monday that navigation at Kaub could be completely suspended by the end of the week.
Due to reduced vessel capacity, some cargo is being shifted to roads, and in certain federal states, the ban on truck traffic on Sundays and public holidays has been lifted. Tim-Oliver Mueller, head of the German Construction Industry Association, warned that certain construction materials cannot be easily transported by road or rail due to lack of capacity and their large volume, emphasizing that replacing a single barge would require as many as 150 trucks.
German companies are increasingly raising the alarm over growing disruptions. Chemical company Covestro announced that it cannot fully compensate for the lack of transport capacity by rerouting to trucks and trains, and has declared "force majeure" for products such as polyether polyols used in mattresses and refrigerator insulation. Production at Evonik's chemical park in Marl is also hampered by reduced cargo inflows.
"Alarm bells are ringing loudly: extremely low water levels are increasingly pushing logistics and supply chains to their limits," said Wolfgang Grosse Entrup, CEO of the German Chemical Industry Association (VCI). State-owned energy company Uniper pointed to reduced output at its hydroelectric plants, echoing similar comments from local competitor EnBW last week.
Salzgitter, Germany's second-largest steelmaker, confirmed that the low Rhine water level has forced it to transport coal by rail from Rotterdam to its HKM division. "The current situation shows that we must pay greater attention to waterways as part of our critical transport infrastructure. Low water levels cannot be prevented," said Mueller.
Katharina Stelzer, CEO of German agricultural trader RWZ, described the possibility of the Rhine's level falling further as "catastrophic." She noted that in normal years, her company ships 50,000 metric tons or more from its terminals in Worms and Andernach in July and August, whereas this year, less than 10 percent of that amount has been shipped during the same period. "If the Rhine's level does not recover by October, things will become really challenging for us," Stelzer warned.
Experts at the Kiel Institute for the World Economy estimate that low river levels could cost the German economy between one and two billion euros in lost activity in the third quarter and reduce gross domestic product by 0.1 to 0.2 percent. Germany's industry alone transports approximately 200 million tons of goods on the Rhine annually, including fuel and raw materials, underscoring the scale of potential damage to the entire European economy.
