Rain in recent days has increased Rhine river water levels in Germany, allowing vessels to transport more cargo, though most are still operating at approximately half capacity, according to Reuters.
One trader stated, "Large volumes of rain have fallen in the Rhine region in past days and there has been an improvement in the low water problem... More rain is forecast and if it actually arrives, the parts of the Rhine could see a significant recovery next week, although water is still likely to be under levels allowing normal sailings."
Extreme dry weather in March and April resulted in low water hampering shipping on the river south of Duisburg and Cologne, including the chokepoint at Kaub, traders reported.
Despite this, freight deliveries are continuing, with loads distributed among a greater number of vessels, leading to increased costs for cargo owners.
Rain in south Germany elevated Kaub water levels sufficiently to enable ships to carry around 1,400 metric tons of cargo on Thursday, compared to only 870 tons late last week, traders said.
Shallow water necessitates vessel operators imposing surcharges on freight rates to offset the cost of ships not sailing fully loaded, thereby increasing expenses for cargo owners. Consignments must be shipped using multiple vessels instead of a single one, which also raises costs.
Prices for a tanker freighter traveling from Rotterdam to Karlsruhe continued to climb, reaching about 90 euros per ton on Thursday, up from 86 euros per ton earlier in the week. This represents an increase from 46 euros in early April and 34 euros in late March.
The Rhine serves as a crucial shipping route for commodities including grains, minerals, ores, coal, and oil products, such as heating oil. German companies experienced supply bottlenecks and production issues in summer 2022 when a drought and heatwave led to unusually low Rhine water levels.