Please pay attention to shipping! Freight to this large market will be blocked and a sea surcharge will be imposed.
At present, the water in the Rhine River is too low to allow some of the larger vessels through. Others have been forced to reduce their cargo, and lighten the load so that they sit higher in the water. And they’re keeping a close eye on the river levels.
The water level of the Rhine River has been at its lowest value since 2007, which has seriously affected European inland shipping. The water depth in some river sections is less than one meter.
It is reported that some key sections of the Rhine are expected to be unnavigable from August 12.
Impose a low water surcharge
The Rhine River, which can be called the “lifeline” of the European economy, is an important shipping channel in Europe. It flows through countries such as Switzerland, Germany, France, and the Netherlands. Every year, tens of millions of tons of goods are transported between countries through the Rhine River.
As the water level of the Rhine has dropped, the local shipping industry has been hampered, and freight rates have also skyrocketed. The latest data as of the 10th showed that the water depth of some basins was only 48 cm, and some cargo ships had to cut more than 30% of their cargo. Freight rates through the Rhine have risen from €20 a ton in June to €110 a ton these days.
Water levels on key stretches of the Rhine have fallen to extremely low levels, which has also led major barge operators to impose cargo loading restrictions and low-water surcharges on barges on the Rhine. When water levels dropped below 81cm on the Kaub and 181cm on the Duisburg-Ruhrort late last month, Barge operator Contargo imposed low water surcharges, and when levels dropped below 50cm last week, Contargo increased these to €589 per 20ft box and €775 per 40ft.
Find Alternative Shipping Solutions
Hanja Maria Richter, from shipping company Hapag-Lloyd, said ships on the Rhine could only carry 50% of their capacity, affecting the company’s inland logistics services. Hapag-Lloyd had to find alternative transport solutions to move the goods by train or road. Another option is to reroute cargo through northern ports such as Hamburg or Bremerhaven that do not depend on the Rhine. A spokesman for the port of Antwerp-Bruges said rail operators were also increasing the frequency of services and using longer trains.
Europe may face severe economic losses
German officials said that the water level of the Rhine River has dropped to a dangerously low point, and shipping on the river may stop for a few days. The Rhine is one of Europe’s great working rivers and industry relies on barges to fetch and carry raw materials and finished products to and from the power plants and factories that line the riverbank. The water’s already too low to allow some of the larger vessels through. Others have been forced to reduce their cargo, and lighten the load so that they sit higher in the water. And they’re keeping a close eye on the river levels.
Statistics show that European rivers provide more than 1 ton of freight per EU resident each year, and river transportation contributes about 80 billion US dollars to the regional economy. The Rhine, which has long been the backbone of the German, Dutch and Swiss economies, has now dried up to critical water levels, making it nearly impassable for ships and hindering the flow of large cargoes such as diesel and coal. Germany has announced the resumption of coal power generation. Affected by the high temperature, the logistics chain of coal originally transported through the Rhine River has also been hindered, aggravating the energy crisis caused by the reduction of Gazprom supply.
Mark Schattenberg, an economist at Deutsche Bank Research, said: “This time the low-water mark comes earlier, and if it lasts longer (compared to 2018), the economic damage will be more severe.” Capital Economics expects that Germany’s economic growth will slow in the third quarter of this year, and the economy may shrink in the fourth quarter.
“Lower Rhine water levels make a recession more likely,” said Andrew Cunningham, chief European economist at the consultancy.
