Water levels on the Rhine River, a critical inland waterway in Germany, have dropped to near the lowest point recorded in eight years, raising concerns over disruptions to shipping and manufacturing across the region. The navigable depth at Kaub, a key bottleneck between Mainz and Koblenz, fell to 25 centimeters on the water gauge, matching the record low seen in 2018. This measure corresponds to an actual navigation channel depth approximately one meter deeper, though forecasts suggest it may fall further in the coming days.
The ongoing drought and extreme heat across Europe have significantly reduced river levels. German temperatures recently approached 40 degrees Celsius following a record-breaking heatwave in June—the hottest month ever recorded on the European continent. Authorities note that the low-water period has commenced unusually early this year, compounding challenges for industries relying on the Rhine for transport.
Lower water levels constrain cargo capacity, forcing vessels to carry reduced loads. This limitation necessitates more ships to move the same volume of goods, driving up transportation costs and creating logistical bottlenecks. Deutsche Bank economist Marc Schattenberg highlighted the difficulty of substituting river freight with rail or road options, especially given ongoing construction that limits alternative transport routes.
The Rhine is essential for the chemical manufacturing sector, with companies such as BASF, Covestro, and Evonik operating plants along its banks. These companies are vulnerable to supply chain interruptions caused by restricted river navigation. BASF, headquartered in Ludwigshafen, acknowledged the risk of supply disruptions if water levels continue to fall. However, the firm noted it has contingency plans including deploying specialized ships and shifting cargo to other transport modes, partly to minimize the impact compared to the 2018 drought period when it faced a €250 million hit to operating profits. BASF’s CEO Markus Kamieth cautioned that force majeure declarations or product shortages cannot be ruled out, as acute raw material shortages could trigger wider production effects.
Covestro reported building up raw material inventories several weeks in advance and utilizing vessels with lower drafts that can navigate shallower waters. Evonik and other chemical producers are similarly monitoring the situation closely.
Beyond the Rhine, the Danube River has also experienced historic lows, particularly in Hungary. The drop has forced a nuclear power plant, which supplies nearly half of Hungary’s electricity, to announce a shutdown expected within days, underscoring the broader economic impacts of drought across Central and Eastern Europe. In eastern Serbia, the Danube’s decline has been so severe that sunken German World War II vessels have become visible.
Some economists warn that prolonged low water levels on these rivers could reduce German economic growth by as much as 0.2 percentage points, reflecting the wide-reaching consequences of climate-driven extreme weather events on European infrastructure and industry.