Low water levels after recent dry weather are preventing cargo vessels from sailing fully loaded on the Rhine river in Germany, with surcharges added to the usual freight rates, commodity traders said on Thursday, according to Reuters.
Low water is hampering shipping parts of the river from Cologne southwards, including the chokepoint of Kaub, traders said. Shallow water means vessel operators impose surcharges on freight rates to compensate for vessels not being able to sail fully loaded, increasing costs for cargo owners.
The Rhine is an important shipping route for commodities such as grains, minerals, chemicals, ores, coal and oil products, including heating oil.
German companies faced supply bottlenecks and production problems in summer 2022 after a drought and heatwave led to unusually low water levels on the river. But repeated rain this summer kept Rhine water levels high, enabling shipping to generally operate normally.