Germany’s rivers are suffering from a severe lack of rainfall, with historically low water levels disrupting navigation on the Rhine and Danube rivers and creating growing concerns for the country’s economy.
The Rhine and Danube have not seen water levels this low for a long time. In some areas, record-low measurements have been recorded due to prolonged drought and high temperatures across large parts of the country. The extended dry period has reduced water levels along Europe’s busiest inland shipping route, which connects the major port of Rotterdam in the Netherlands with much of western Germany.
Persistently low water levels on the Rhine, making it difficult for cargo and passenger ships to operate, could reduce Germany’s economic output in the third quarter by up to 0.2%, according to the Kiel Institute for the World Economy.
Germany’s national weather service is now forecasting another period of high temperatures, particularly in the southern regions of the country.
How are low Rhine water levels affecting the economy?
The Rhine is a crucial transport route for goods such as grain, minerals, ores, coal, petroleum products, and fuel. When water levels fall too low, cargo ships cannot sail fully loaded and must distribute their goods across multiple vessels.
Shipping companies have reported that some inland vessels are operating at only 15% to 20% of their maximum cargo capacity. This increases transportation costs and puts additional pressure on an economy that had only recently begun showing signs of modest recovery.
“The consequences could be significant enough to reduce Germany’s GDP growth in the third quarter by between 0.1% and 0.2%,” said Stefan Kooths, director of the Business Cycles and Growth Research Center at the Kiel Institute for the World Economy, according to Reuters.
Germany’s Waterways and Shipping Administration expects the Rhine’s water level to fall to around 25 centimeters by Friday, approaching the record low recorded in October 2018.
“Since water levels are unlikely to rise suddenly above the critical threshold at the beginning of August, transport capacity is expected to remain limited for some time during the following month,” Kooths added.
The situation highlights the growing economic impact of climate-related extremes, as prolonged droughts and rising temperatures increasingly affect Europe’s infrastructure, energy supply, and transportation networks.
