The river Rhine flows through Germany’s industrial heartland. But increasingly frequent low water levels on the Rhine are disrupting Europe’s largest economy. Companies are finding new ways to transport cargoes from coal to chemicals as the waterway becomes impassable for large vessels.
KOBLENZ, Germany — Kevin Kilps’s car ferry churns through the waters of the Rhine River as it heads toward Kaub, a picturesque village just south of the rocky outcropping named for the siren Lorelei and along one of several river islands that dot this stretch of the river known as the “Island Rhine.” It’s a busy stretch of the waterway on a typical day, with commuter ferries jostling for space with barges shuttling raw materials to regional factories or shipping German goods to ports in North Sea countries. There are also tourist boats ferrying passengers to see medieval castles and vineyards that line the banks.
But the water level on the Rhine is now down to a record low, and companies that depend on river transportation are starting to look for other routes. The river is the commercial artery for about 80% of the country’s inland shipping of goods, including crude oil and natural gas.
When the Rhine runs drier, it can limit the capacity of ships to carry goods and create safety concerns. This year, it is expected to limit the river’s inland shipping capacity by about 40%, meaning it will take 40 trucks to deliver what just one ship would be capable of carrying.
The Rhine levels are at their lowest point since a significant program to straighten the river in the 19th century. The river now drops from its source in Switzerland to the Dutch border, where it joins Meuse and Scheldt to form the most significant river delta in the world, with a surface area of about 25,347 square kilometers (9,787 square miles).
In addition to being a critical inland waterway for trade and tourism, the Rhine is a critical link to Germany’s fossil fuel reserves. Germany’s power plants are powered by coal, and the country relies on river freight to get the coal it needs. But the low river levels limit the amount of coal that can be shipped by boat, and the country is looking at other options to get the goods it needs to keep its economy running.
If the situation doesn’t improve soon, it could add to an already weak economic picture. A new report from Pantheon Macroeconomics estimates that the slowdown in Germany’s manufacturing sector will probably push the country into a shallow recession in the final months of 2018. That could further depress global growth, leading to lower prices for German exports. And the problems with the Rhine are making it even more challenging to import natural gas, increasing costs for energy companies and consumers. Germany imports most of its natural gas from Russia, but its economy is already under pressure from the recent plunge in oil and natural gas prices.
