Rhine water level falls again in Germany - Reuters

Water levels on the Rhine in Germany continue to fall in hot weather, sending shipping costs higher because vessels cannot sail on the river fully loaded, vessel brokers said on Friday, according to Reuters.

Freight shipping on the river continues but with vessels sometimes forced to sail 75% empty.

The water level is particularly low at the chokepoint of Kaub near Koblenz. The reference waterline level at Kaub was only 56 centimetres on Friday, vessels need about 1.5 metres of waterline to sail fully loaded.

Spot prices for a liquid tanker barge from Rotterdam to Karlsruhe, south of Kaub, rose to about 94 euros ($96.15) a tonne on Friday, up 2 euros on the day, moving even further away from prices around only 20 euros a tonne in June, vessel brokers said.

Navigation authorities do not close the river at times of low water, leaving it to vessel operators to decide when to stop.

Chemicals group BASF said its output has not been affected but it could not rule out production reductions by individual plants in the coming weeks.

BASF was concentrating efforts on chartering vessels suitable for shallow water and has sought transport alternatives such as railways.

Shipping capacity is already tight because of increased demand after Germany’s move to increase coal-fired electricity generation as it braces for reduced gas supplies from Russia, he said.

Large numbers of vessels have also transferred to the river Danube to transport Ukrainian grain exports that cannot be moved by sea, he said.

The Rhine is an important shipping route for commodities including grains, chemicals, minerals, coal and oil products including heating oil.