Rhine oil barge rates hit record high as Kaub bottleneck becomes impassable

Freight rates for oil product barges on the Rhine River have surged to record highs, driven by critically low water levels at the Kaub bottleneck. These low levels have rendered most resupply operations uneconomical or impossible, leading to disruptions in fuel availability and price increases across western Germany. The Rhine's low water levels are a consequence of severe heatwaves affecting Europe, which have also impacted other vital waterways such as the Danube. These conditions are causing widespread industrial disruption, reducing power generation, and affecting energy supplies. Industries heavily reliant on river transport, including oil refining, chemicals, and heavy manufacturing, are facing significant challenges. In a related development, QatarEnergy Marketing has maintained its August Qatar Sulphur Price (QSP) at $890 per tonne fob Ras Laffan/Mesaieed, the same price as in July. However, despite the stable base price, higher freight rates and insurance premiums are expected to increase the delivered cost of sulphur to China.