Key facts
- Low water levels on the Rhine River are significantly impacting fuel supply in western Germany.
- Barge traffic is restricted at the Kaub bottleneck, making transit uneconomic for many vessels.
- Freight rates have risen sharply, increasing the cost of delivering fuel components and products.
- Gasoline availability is severely limited at many loading terminals in western Germany.
- Fuel prices have reached their highest point since late April, influenced by higher gasoil futures.
- Demand is increasing as companies replenish depleted fuel stocks and due to seasonal activity.
Fuel supply in western Germany is under increasing strain due to persistently low water levels on the Rhine River, hindering barge traffic at the critical Kaub bottleneck. Many inland vessels can no longer pass the bottleneck, and for others, transit has become uneconomic due to severely restricted cargo volumes, according to shipowners.
Low water levels are also impacting refinery logistics along the Rhine. Freight rates have surged to their highest levels since Argus began tracking them, significantly increasing the cost of delivering blending components and other feedstocks to refineries. The movement of gasoline, diesel, heating oil, and by-products has become more difficult and expensive.