Crippling bottlenecks on the Rhine
The Rhine River serves as a major industrial artery in Europe, facilitating the transport of chemicals, refined oil, and essential raw materials across multiple borders. However, at the Kaub measuring point, the water level has dropped dramatically, falling below the critical 30-centimetre mark necessary for commercial shipping. In late July, the level was recorded at 27 centimetres, and shipowners are now reporting that many vessels are unable to pass through the bottleneck at all or only with significantly reduced cargo volumes. These delays are not just causing logistical disruptions—they are also having a serious economic impact. Euronews notes that the Upper Rhine and the Main River are now effectively cut off from the Amsterdam-Rotterdam-Antwerp (ARA) trade hub, one of the continent's key commercial centers.
The chemical and petrochemical industries are already experiencing the pressure. For instance, LyondellBasell recently declared force majeure on butadiene supplies from its Wesseling plant, citing the low water levels as a primary cause of supply disruptions. Similarly, BASF has issued warnings about possible product shortages or similar force majeure declarations, as it heavily relies on the Rhine to transport essential materials such as naphtha and liquefied petroleum gas (LPG) from North Sea ports to its inland production facilities. Without sufficient cargo capacity, these industries face major challenges in maintaining their operations.
Cooling and supply chains under strain
The impact of low water levels and rising temperatures extends beyond cargo transport. Industrial cooling systems, especially in nuclear and thermal power plants, are becoming less efficient, which increases operational costs and can pose safety concerns. At the same time, freight costs for moving petroleum and diesel upriver are surging, further straining the energy and manufacturing sectors. Coal-fired power stations are also struggling, as barges are now carrying far less fuel than usual due to the shallow water. In Duisburg, industrial giant Thyssenkrupp has reduced production in its blast furnaces to account for the disrupted supply chain. While the company has chartered shallower-draught vessels to adapt, road and rail networks are unable to fully compensate for the river's diminished capacity.
With water levels remaining critically low and no immediate relief in sight, freight rates for Rhine shipping have reached record levels. This creates mounting pressure on European manufacturers, particularly those in the steel and chemical industries. As supply chains become increasingly strained, the potential for further disruptions grows. Companies are now forced to reevaluate their logistics strategies and prepare for long-term operational adjustments.
The Danube’s record drought
The Danube River, which flows through or borders ten countries, including Germany, Austria, Hungary, and Romania, is experiencing a severe drought that has broken historical records. On 10 July, the water level in Budapest reached an unprecedented low of 23 centimetres, surpassing the 2018 record by 10 centimetres. According to Hungary’s official water-monitoring service, the level is measured against a fixed reference point, not the river’s actual depth. The Hungarian Construction and Transport Ministry reported on 14 July that most cargo vessels had halted operations along the Hungarian section of the Danube. Those still running were only able to carry 10 to 20 percent of their usual cargo volume. The situation varies by location—some stretches are completely blocked, while others allow minimal cargo transportation.
The consequences of this crisis go beyond standard freight operations. At least 15 hotel ships, used for tourism and leisure, are now stranded in the region. This adds an unusual and unexpected challenge to the already complex situation. Industries that rely heavily on Danube transport, particularly those in the agricultural and energy sectors, are at risk of further bottlenecks. As the river’s ability to support commercial traffic diminishes, it is losing its role as a reliable conduit for trade and economic activity. The situation on the Danube mirrors the ongoing crisis on the Rhine, highlighting the broader regional impact of low water levels and extreme weather conditions.