European freight operators are changing vessels and transport routes as low Rhine water levels reshape the region's industrial logistics, Bloomberg reported on 26 September.[20] The report says water levels reached a record low during the week, extending disruption after a summer of drought.[20] Chemical plants, steelworks and refineries along the river depend on the route to move materials and finished goods.[20]
Lower cargo loads mean operators need more barges to move the same volume, and Bloomberg puts freight costs at around five times their level at the start of summer.[20] Shell and Lanxess have shifted some shipments to rail and road, although those alternatives also carry high costs.[20] The disruption has forced chemical producers to reduce output or declare force majeure on some products.[20]
BASF worked with HGK Group on vessels that can carry more cargo in shallow conditions than conventional ships, and it is strengthening alternative transport links at Ludwigshafen.[20] The company told Bloomberg it did not expect acute, major economic damage from this year's low water.[20] The report says nine of the 13 vessels designed for shallow water available in Germany belong to HGK, leaving limited capacity for a rapid change across the wider fleet.[20]
ING transport economist Rico Luman told Bloomberg that low water had persisted for more than two months and could continue into October.[20] Research teams in Duisburg are testing designs with smaller propellers and wheels mounted on the sides to help vessels operate in shallower water.[20] These changes address a continuing cargo constraint, rather than evidence that normal carrying capacity has returned.[20]
Sources: [20] https://gcaptain.com/low-rhine-levels-force-companies-to-adapt-to-new-normal Cover image is an archival Reuters photograph of the Waal at Nijmegen on 7 August 2022, as captioned by the publisher.[20]