Posted By Global Banking and Finance Review
Posted on June 30, 2025
HAMBURG (Reuters) -A heat wave in western Europe has lowered water levels on Germany's Rhine River, hampering shipping and raising freight costs for cargo owners due to additional surcharges as their vessels were unable to sail fully loaded, commodity traders said on Monday.
Low water has limited shipping on all of the river south of Duisburg and Cologne, including the chokepoint of Kaub, traders said.
At Kaub, cargo vessels could only sail about 50% full, at Duisburg and Cologne between 40-50% full.
Shallow water leads vessel operators to impose surcharges on freight rates to compensate for the vessels being unable to sail fully loaded, which raises the need for additional vessels to move consignments and increases costs for cargo owners.
Still, cargo is being delivered, with loads being carried by several vessels instead of one, traders said.
The Rhine is an important shipping route for commodities such as grains, minerals, ores, coal and oil products, including heating oil.
An intense heat wave is again forecast in parts of Germany this week, including in the Rhine area, with temperatures as high as 40 degrees Celsius (104 degrees Fahreinheit) possible in Cologne.
Traders said no improvement was in immediate sight and water levels could fall further.
German companies also faced supply bottlenecks and production problems in the summer of 2022 after a drought and heat wave led to unusually low water levels on the Rhine.
(Reporting by Michael Hogan, Editing by Bernadette Baum)