Newsletters

Reuters reported on 27 July 2026 that water levels on the River Rhine continue to fall following lower-than-expected rainfall in southern Germany, with Germany’s inland navigation authority (WSV) forecasting further declines in the coming days. As one of Europe’s most important freight corridors, the Rhine is once again facing severe navigability constraints and increasing transport costs, placing additional pressure on already constrained supply chains.

The impact is being felt across European industry. The Rhine is a vital transport artery connecting the ports of Rotterdam and Antwerp with Germany, Switzerland, and Northern Italy, carrying large volumes of chemicals, petroleum products, coal, ores, construction materials, agricultural commodities, and containers. Rising low-water surcharges and reduced vessel utilisation are adding costs throughout the supply chain at a time when many sectors are only beginning to recover from previous economic disruptions.

Market sources quoted by Reuters indicate that barge transport rates for tanker traffic between Rotterdam and Karlsruhe have risen to around €120-125 per tonne, compared with approximately €45 per tonne at the end of June. Industry representatives warn that if water levels continue to decline, some operators may temporarily suspend services as cargo volumes become uneconomical or concerns over vessel safety increase.

Alternative Transport Routes Also Under Pressure

Shifting freight to rail and road is proving increasingly difficult. Rail capacity along the Rhine corridor is already heavily constrained due to the long-planned refurbishment of Germany’s right-bank Rhine railway line between Wiesbaden and Bonn as well as the high-speed rail project between Basel and Karlsruhe, forcing traffic onto diversionary routes that are themselves operating at or near full capacity.

German tri-modal logistics operator Contargo has warned that it may have to suspend regular inland waterway services to parts of the Upper Rhine, Middle Rhine, and Rhine-Main regions if water levels continue to fall. According to the company, once the Kaub gauge drops to around 25 cm, inland navigation is no longer economically viable, leaving containers to be moved by rail or road instead.

Contargo is working with railway companies and terminal operators to increase rail capacity and introduce temporary “bypass” rail services linking the seaports of Rotterdam and Antwerp with the Rhine hinterland. However, the company stresses that securing additional train paths has become extremely challenging, while the remaining diversion routes are more than 200 kilometres longer and require additional locomotives, wagons, and train crews.

Nieuwsblad Transport also highlighted the growing operational challenges for inland navigation. According to Koninklijke Binnenvaart Nederland (KBN), substantially more vessels are required to transport the same cargo volumes during periods of low water, significantly increasing transport costs. At the same time, drought conditions have forced the temporary closure of the locks at Eefde, cutting access to the Twentekanaal and creating additional bottlenecks for inland navigation in the Netherlands.

The current situation echoes the disruption experienced during the summer of 2022, when prolonged drought and exceptionally low Rhine water levels caused major supply bottlenecks for German industry. With forecasts indicating continued hot and dry weather, the latest developments once again underline the growing vulnerability of Europe’s transport system to climate-related disruptions and demonstrate that when one transport mode comes under pressure, alternative modes may no longer have sufficient spare capacity to absorb the disruption.