Low Rhine Levels Increasing Transportation Costs

Low water levels on the Rhine due to the mild winter and current lack of precipitation are disrupting barge traffic and forcing up the cost of shipping.

• The water level at the key location at Kaub in Germany is the lowest it’s been this time of year since 2017. Barges transporting diesel further into inland Europe are restricted to loading at about half-capacity.
• The cost of transporting fuel on the river by barge between Karlsruhe in Germany and the Netherlands is nearly triple the five-year average.
• Last summer production was cut or stopped due to the low river levels restricting the ability to transport along the river. The Rhine links German and Swiss industry with the large port at Rotterdam.
• Low reservoir levels in Europe could also impact hydroelectric production and reduce the water available to cool nuclear reactors. Hydropower generation in the Nordic region is 10% below the five-year seasonal average according to Bloomberg. Any recovery depends on the spring snow melt.