Renewed low water levels on the Rhine push river freight costs higher again

Water levels on the Rhine are falling again after a prolonged period of dry weather, forcing cargo vessels to reduce their loads and pushing transportation costs higher. Companies are already redirecting some cargo to rail and road transport.

As of September 7, the water level at Kaub, one of the key points for navigation on the Rhine, stood at around 34 cm, according to Germany’s WSV inland waterways authority. The level fell by around 50 cm over the week, although conditions remain better than in August.

Low water levels are forcing barges to continue operating with reduced loads. More vessels are required to transport the same volumes, while some cargoes have to be split between several barges, increasing logistics costs.

Freight rates on the Rhine have already risen significantly. According to market participants, tanker freight from Rotterdam to Karlsruhe increased over the week from around €100/t to €120–125/t, a rise of 20–25%.

Rainfall is expected across the Rhine catchment area in the coming days and could help water levels recover. However, market participants do not expect the rainfall to allow river transport to quickly return to normal loading levels.

Tags: Rhine, prices, logistics, low water levels