Rhine River Water Rises in Germany, But Shipping Still Part-Loaded
Impact of Rising Rhine River Water Levels on Shipping and Trade
Recent Changes in Water Levels
HAMBURG, May 8 (Reuters) - Rain has raised water levels on the river Rhine in Germany enabling vessels to sail with more cargo after shallow water hindered shipping this week, but sailings with full loads are still not possible, commodity traders said on Friday.
Dry weather in April and early May meant the river became too shallow for vessels to sail fully loaded, with some sailing half full or less.
Consequences of Shallow Water
Freight Rate Surcharges
Shallow water means vessel operators impose surcharges on freight rates to compensate for vessels not sailing fully loaded, increasing costs for cargo owners. It also means loads must be spread among several vessels sailing part loaded, also increasing costs.
Partial Recovery After Rainfall
Rain in past days means water levels have risen and vessels are generally able to sail about 60% to 70% full, traders said.
Current Shipping Conditions
Ongoing Challenges in Northern Sections
Shallow water continues to hinder shipping on some northern river sections including around Duisburg and Cologne and at the chokepoint of Kaub.
Outlook for Full Loads
But water at Kaub could return to levels allowing full loads early next week as recent rain drains into the river, they said.
Importance of the Rhine River
Key Shipping Route for Commodities
The Rhine is an important shipping route for commodities such as grains, minerals, ores, chemicals, coal and oil products, including heating oil.
Historical Context
Supply Bottlenecks in 2022
German companies faced supply bottlenecks and production problems in summer 2022 after a drought led to unusually low water levels on the river.
(Reporting by Michael Hogan in Hamburg, editing by Elaine Hardcastle)
