Rhine Water Levels Rise, Increasing Cargo Capacity
HAMBURG (Reuters) -Rain over the Easter weekend in Germany has raised Rhine river water levels, with vessels able to carry more cargo, though the river is still too shallow for normal sailings, commodity traders said on Tuesday.
Extreme lack of rain in March and April resulted in low water levels hampering April shipping on all of the river south of Duisburg and Cologne, including the chokepoint of Kaub, traders said.
In northern regions around Duisburg vessels were able to sail about 80% full, against only half full last week, traders said.
Rain in southern Germany raised Kaub water levels enough to enable ships to carry more than 1,400 metric tons of cargo, against only 870 tons earlier in April, with vessels now sailing more than half full at Kaub.
More rain forecast in Rhine river catchment areas this week could bring further improvement, traders said.
Shallow water means vessel operators impose surcharges on freight rates to compensate for vessels not sailing fully loaded, increasing costs for cargo owners. Consignments must be shipped by several vessels instead of one, also raising costs.
The Rhine is an important shipping route for commodities such as grains, minerals, ores, coal and oil products, including heating oil.
German companies faced supply bottlenecks and production problems in summer 2022 after a drought and heat wave led to unusually low Rhine water levels.
(Reporting by Michael HoganEditing by David Goodman)
