Lower water levels on Rhine from heatwave are disrupting shipping and raising freight costs 

The current heatwave in Western Europe has lowered water levels on Germany’s Rhine River, disrupting shipping and raising the overall cost of freight for cargo, traders have told Reuters. 

The shallow water levels have meant that vessel operators cannot sail fully loaded and are instead splitting their loads across several vessels. The additional cost of all this is being passed on in the form of new additional surcharges, traders have told Reuters. 

The Rhine is a vital shipping route for commodities such as grain, minerals, ores, coal and oil products including heating oil, according to Reuters. 

Reuters reported that at the town of Kaub, cargo vessels are only sailing about 50% full, and at Duisburg and Cologne, vessels are reported to be between 40% to 50% full. 

Russell Trade Threat Intelligence analysis reveals that Duisburg reported an annual trade flow of $424 million in 2024 and Cologne had a trade flow of $31 million in the same period too. 

There are more than six weeks of the Meteorological summer left and typically the second half of the season is warmer than the first, which means that a prolongation of draught conditions may indeed be possible.  

In fact, there are already signs of high pressure returning to Central Europe towards the middle of the month which will encourage evaporation and reduce rainfall. This would send temperatures back into the low/mid 30’s, possibly for a prolonged period, not dissimilar to the mid/late June heatwave.