Rhine water levels hit record lows, driving up fuel prices in Germany and Switzerland
The water level of the Rhine River has dropped to a historic low, forcing cargo ships to reduce loads or suspend operations. As 80% of Germany's inland water traffic relies on the river, the disruption is increasing transport costs and fuel prices in Germany and Switzerland, with concerns growing that the shipping route could be severed entirely.
The unusual summer that Europe is experiencing is not skipping Germany. Although heat waves are slightly more moderate than those in France or Britain, and forest fires are confined to smaller areas, the lack of precipitation has become the headline in recent weeks. The Rhine, the trade artery that helped turn Germany into a prosperous European economy and is still considered a significant and cost-effective transport route, has almost dried up in some areas, with its general level dropping abnormally.
In several places in the state of North Rhine-Westphalia, the low level of the Rhine broke negative records last week. In Düsseldorf, the river level stands at only 22 centimeters, one centimeter less than the all-time low recorded since measurements began in 1882. Pictures of exposed land in the heart of the river, a German national symbol, or bridges over dry patches have been common in the German media in recent days.
Currently, the barges that carry goods along the Rhine can only operate in certain sections. Last month, operators announced they were dramatically reducing cargo weight to keep ships afloat and prevent them from scraping the riverbed. Local authorities and the business sector have raised a red flag in recent weeks, demanding a "national emergency effort" to deal with the consequences of the drying river.
The German government has announced it is temporarily lifting the ban on truck traffic on weekends to allow for land transport—which is more expensive—to compensate for the loss of capacity along Germany's main trade route. This phenomenon is repeating itself on other rivers, such as the Elbe. The recent week of higher-than-usual temperatures only increased water evaporation and failed to provide the necessary precipitation to raise the water level.
Realization of catastrophic forecasts
The economic consequences of the situation are already being felt. In Switzerland, for example, a large portion of fuel arrives from Germany via ships sailing the Rhine's southern section. The current situation has reduced supply, increased transport costs, and reportedly raised gasoline prices at stations by at least 16 Swiss centimes. Fuel prices in Germany have also risen following the increase in transport costs. According to an estimate by Oxford Economics, a "prolonged drought" that continues to affect the Rhine will shave about 0.2% off German GDP in the current quarter. About 80% of inland water traffic in Germany is conducted on the Rhine.
The situation is particularly serious in southern Germany, where a level of only 17 centimeters was measured at the Kaub station, compared to a negative record of 25 centimeters in 2008. The 1,223-kilometer-long Rhine is a trade artery for six countries: Germany, France, the Netherlands, Liechtenstein, Austria, and Switzerland. German industrial giants such as BASF, ThyssenKrupp, and Bayer rely on it to receive raw materials from ports. It is also used to transport coal and gasoline from North Sea ports for distribution throughout the region. "The Kaub station has effectively become Germany's Strait of Hormuz," an analyst from ING told the Financial Times.
The danger now is that the river will be split into two sections, with no possibility of sailing along its entire length. The catastrophic forecasts of climate experts in recent years—that European rivers like the Danube or the Rhine would become unusable for water transport during summer months—are coming true. There are now calls in Germany for engineering efforts to deepen the Rhine and ensure the passage of ships and barges throughout the year.
