Rhine shipping back to normal as water rises
Water levels on the river Rhine have risen enough to allow vessels to sail fully loaded along the entire German section of the river, traders said on Thursday, Reuters reports.
One of the driest Novembers on record in Germany had caused a sharp fall in Rhine and Danube water and some shipping costs had risen to double their normal levels in the past four weeks with vessels sailing 50 to 80 percent empty on parts of the rivers.
"Following rain in Germany and Switzerland there was another sharp overnight rise in water levels and ships are able to take on full loads along the entire German section of the Rhine," one trader said. But water levels on the Danube are still low and ships are still only able to take on around 80 percent of normal loads, traders said. "The return of the Rhine to normal levels will make logistics a lot easier and mean traders will not face a painful increase in costs for fulfilling previously-agreed contracts," another dealer said. "A large volume of grains had been transferred to road transport which made deliveries possible but caused a huge increase in costs. "Some people have also been seeking delays in deliveries in past weeks in the hope the river would rise."
Low water means vessels are unable to load to full capacity and surcharges are added to freight rates, increasing costs for cargo owners. More vessels are also required to ship the same freight volume. Cargo owners have to pay for the full vessel even if it sails half or a quarter full.
The Rhine is an important shipping route for commodities including grains, minerals, coal and oil products including heating oil. It is a major route for Switzerland's commodity imports.
The Danube is a major route for east European grain exports to west Europe. Rain forecast in south Germany in coming days could help the Danube rise to normal levels, traders said.