Germany: Rhine level drops again, cargo ships unable to travel fully loaded

Water levels on the Rhine fell again over the weekend due to heat and drought and cargo ships can no longer be fully loaded, brokers and traders said today.

Shallow waters create problems for navigation along the entire length of the river in Germany. The Rhine is one of the important canals connecting Germany’s industrial hinterland with ports on the North Sea, from where products are exported to world markets.

Cargo ship traffic continues on the river, but boats are sometimes forced to sail three-quarters empty. Hot and dry weather is forecast this week and the situation is not expected to improve.

Low water levels in the Rhine will affect output next month at two major German coal-fired power plants.

Chemicals group BASF said on Friday it could not rule out cutting production if the low level of the Rhine affects transport.

Freight costs have not changed significantly today, maintaining their recent high levels, freight brokers said.

Maritime authorities do not close the river when its water level drops and it is up to ships to decide when to stop sailing. The Rhine is an important shipping route for goods such as grain, chemicals, ores, coal and petroleum products, including heating oil.

SOURCE: AMPE

Source: Capital

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