Heat in Germany threatens manufacturing sector due to Rhine shallowing
Germany's manufacturing sector faces serious disruptions as the ongoing heat has significantly hampered cargo transportation along the Rhine, the country's most important waterway.
The current situation darkens the prospects for the recovery of Europe's largest economy.
The water level in the river has fallen to critical levels, forcing vessels to transport significantly smaller volumes of cargo, which leads to increased transportation costs. The problem directly affects barge deliveries of goods such as coal, crude oil, and chemicals. In particular, the industrial company Thyssenkrupp stated that its steel plant in Duisburg had to temporarily abandon the use of its own fleet and switch to hiring third-party vessels capable of operating at current transport volumes.
According to Bloomberg Economics analyst Martin Ademmer, another prolonged period of low water will negatively impact industrial production, creating additional risks for an already weak sector. Previously, in 2018, a several-month period of low water levels in the Rhine cost the German economy approximately 0.4 percent of production volume, and the 2022 drought also caused major supply disruptions. In 2026, this problem is exacerbated by the inability to use alternative rail routes, since the key freight route along the right bank of the river is completely closed for repairs.
Source: Lenta.ru
