Key facts
- Water levels in Germany's Rhine river have fallen again this week due to dry weather.
- Cargo shipping costs have risen as vessels sail with less cargo.
- Tanker transport prices from Rotterdam to Karlsruhe jumped to €165-€170 a ton on Friday, up from €100 last week.
- The navigable water gauge at Kaub was around 21 cm on Friday.
- No major improvement in river water levels is expected in the coming week.
Water levels in Germany's Rhine river have fallen again this week after mostly dry weather, leading to increased cargo shipping costs as vessels must sail with lighter loads. The country's inland navigation agency, WSV, reported that the navigable water gauge at the chokepoint of Kaub near Koblenz was around 21 cm on Friday, down from 34 cm on Monday and 50 cm last week. This situation has forced more freight to be transferred to road and railway transport, although current levels remain above the record lows seen in August.
Commodity traders noted that transport prices are rising because ships are sailing with less cargo, necessitating the distribution of loads across multiple vessels. Specifically, prices for tanker transport from Rotterdam to Karlsruhe jumped to approximately €165-€170 a ton on Friday, a significant increase from around €100 the previous week. German companies had already suffered from low Rhine water levels during the summer, facing higher transport costs, logistics bottlenecks, and curbed production. The WSV anticipates no major improvement in river water levels in the coming week, though expected rain might keep levels stable.