Rhine Shipping Stays Under Pressure as Low Water Keeps Freight Costs High

Shipping conditions along the Rhine remain difficult, with water levels declining again after another period of dry weather. Continued restrictions on barge loading are keeping transportation costs elevated along one of Europe’s key routes for moving commodities.

At Kaub, an important bottleneck on the Middle Rhine near Koblenz, the navigable water gauge fell to around 15 cm on September 21 from 26 cm on September 18, according to Germany’s inland navigation agency WSV. The agency does not expect a significant recovery during the coming week, although rainfall could help prevent further declines around current levels.

The latest drop follows several months of challenging navigation conditions. The Kaub gauge fell below 10 cm in mid-August, moving beneath the previous record low of 25 cm recorded in 2018. While the gauge reading is not the actual river depth, which is approximately one meter deeper at the location, lower readings increasingly restrict the amount of cargo barges can carry.

Lower Barge Loads Push Rhine Freight Rates Higher

Persistent low water levels are forcing barges to reduce their cargo loads, increasing the cost of transporting fuels and other commodities along the Rhine.

Tanker freight between Rotterdam and Karlsruhe rose to approximately €185-190/ton on September 21, compared with around €180/ton a week earlier, according to market participants cited by Reuters.

Costs have risen more sharply on longer Rhine routes. Spotbarge data showed freight from the Amsterdam-Rotterdam-Antwerp hub to Basel at €215/ton, compared with €165/ton on September 11. This represents an increase of around 30% in slightly more than a week.

The Rhine plays an important role in transporting oil products, chemicals, coal, ores, grains and other bulk commodities. As water levels decline, vessels must carry less cargo to meet draft limitations. This requires additional trips to move equivalent volumes, increasing overall transportation expenses.

Rail and Road Provide Only Partial Alternatives

Repeated periods of low water during the summer have already encouraged companies to move more cargo by rail and road. However, these alternatives do not have enough capacity to fully replace normal Rhine barge volumes, leaving supply chains vulnerable if restrictions persist.

Rail capacity is facing additional pressure in Germany because the right-bank Middle Rhine railway, an important freight route, remains closed for major refurbishment until December 12. This further limits options for shippers trying to offset reduced river transportation.

Refineries along the Rhine can also rely on pipeline networks. Facilities such as Wesseling, Karlsruhe and Gelsenkirchen have access to crude through pipeline and storage infrastructure. However, transporting refined products away from refineries becomes more difficult when barge availability is heavily restricted, as rail, road and pipeline networks cannot handle normal river volumes at similar costs.

Little Improvement Expected in the Near Term

The short-term outlook for Rhine logistics remains challenging. WSV does not anticipate a major recovery in water levels over the next week, although rainfall could help stabilize the river near current lows.

Without sustained rainfall capable of lifting water levels significantly, reduced barge loading limits are likely to keep freight costs elevated and transportation capacity constrained. Limited rail availability and greater dependence on road transport could add further pressure to supply chains already affected by lower river volumes.

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