Low water levels caused by recent dry weather are once again causing disruptions to cargo shipping on the Rhine river in Germany, leading to surcharges being added to freight prices, according to a Reuters report citing commodity traders.

The stretch of the river south of Duisburg and Cologne, including the critical area of Kaub, is particularly affected by the shallow water, hindering the ability of cargo vessels to sail fully loaded.

As a result of the low water levels, vessel operators are imposing surcharges on freight rates to compensate for the reduced cargo capacity, which ultimately increases costs for cargo owners.

However, there is some hope on the horizon, as rainfall is forecasted in the river catchment areas in Germany starting from June 29 and continuing through the weekend. This rainfall is expected to help raise the water levels, potentially alleviating the shipping difficulties.

The Rhine river serves as a crucial transportation route for a variety of commodities, including grains, minerals, ores, coal, and oil products like heating oil.

In the summer of 2022, German companies faced supply bottlenecks and production issues due to a drought and heatwave, which resulted in abnormally low water levels on the Rhine.

(Writing by Alex Guo  Editing by Harry Huo)
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