Rhine low water drives up European shipping costs

Rhine low water has disrupted European inland shipping this summer, forcing barges to carry lighter loads, pushing cargo toward rail and road and raising transport costs along major industrial routes.

The disruption has hit during drought and record heat in Europe. It is most acute on the Rhine, the core of the inland waterway network, with pressure also reported on parts of the Danube in Serbia, Hungary and Romania, according to freight-forwarding association Clecat.

Maersk said most inland ports along the Rhine can no longer be reached by barge. Clecat said the gauge at Kaub, a key Rhine bottleneck, fell to about six centimetres on August 14, below the previous record low of 25 centimetres in 2018.

Operators have tried to move cargo to trains and trucks, but alternatives are limited. Jean-Laurent Kistler of the French waterways authority VNF in Strasbourg estimated that moving one barge load would require 100 to 200 trucks. VNF Strasbourg said average ship loads on the Rhine fell from 1,500 tonnes to 400 tonnes in August.

Transport company Contargo said low-water surcharges have reached more than 1,000 euros ($1,170) per container at strained points such as Kaub and Cologne. Clecat said whether higher logistics costs reach consumer prices will depend on how long the disruption lasts, the goods involved and how much companies absorb.