Extreme weather patterns continue to hamstring global logistics flows, as the Rhine River, a traditional lifeline of transportation and trade in Europe, is grappling with the pressing challenge of falling water levels, according to the online container trading platform Container xChange.
Barge transports passing through the measuring point at "Kaub"—a bottleneck on the Rhine River just west of Frankfurt—are particularly impacted due to draft restrictions, and there is a looming possibility of other locations facing similar consequences in the near future, the German firm said.
For example, those draft restrictions are already affecting the northern and central areas where the river has become too shallow to accommodate fully loaded containerships around the German cities of Cologne and Duisburg, Container xChange said.
The weight limits come as a historic drought in Central America has also caused low water levels in the Panama Canal, forcing that facility to impose similar draft limits on vessels passing between the Atlantic and Pacific oceans. Those restrictions could grow even tighter in future months, following forecasts of an “El Nino” weather pattern brewing off the West Coast.
In Europe, the maritime container giant Maersk has posted a table of low water level surcharges that institute higher costs for laden containers as the Rhine water level drops. “Kindly note that in case of water levels at Kaub falling below [32 inches] or Duisburg-Ruhrort below [71 inches], we regret that a loading guarantee for your cargo cannot be granted anymore,” Maersk said in a note. “The low water situation is an exceptional and unforeseeable situation that is beyond our control and cannot be predicted, neither the severity nor the duration. We appreciate your understanding and support to overcome this extraordinary situation together.”
Those partially empty ships typically haul commodities such as grains, minerals, coal, oil products, and heating oil to the region, impacting both the logistics industry and the supply chains of numerous companies, according to Container xChange.
“Last summer, the drought and heatwave led to severe water level drops in the Rhine, causing production problems and supply bottlenecks for several German companies. Vessels were only able to sail at a staggeringly low 25% of their full capacity, driving up freight rates and adding further strain to the logistics sector,” Christian Roeloffs, cofounder and CEO of Container xChange, said in a release.
“Unfortunately, this year is proving to be equally if not more demanding. The seasonally adjusted water levels are currently even lower than they were during the same period last year. If the lack of rainfall persists, we could potentially find ourselves facing a situation even more severe than what we encountered in the past. I emphasize the need for preparedness and collaboration among stakeholders to navigate these uncertain waters. We must proactively seek solutions, closely monitor developments, and explore measures to mitigate the impact of this ongoing water scarcity,” Roeloffs said.
