Bloomberg: Rhine River to recede further as climate crisis adds to energy crunch

The Rhine River is set to continue shrivelling early into next week, further restricting the supply of vital commodities to parts of inland Europe as the continent battles with its worst energy crisis in decades.

A key water marker at Kaub - where the river is narrow and shallow - is poised to fall to 30 centimetres by August 15 and drop further in subsequent days, according to German government data, according to Bloomberg.

At 40 centimetres, a level it reached on August 12, it’s not economical for many barges to transit the chokepoint.

The Rhine is used to ship everything from fuels to chemicals, paper products to grains. The climate crisis couldn’t happen at a worse time, with Europe already in the grips of an energy supply crunch worsened by Russia’s war in Ukraine. As climate change dries up Europe’s rivers, it’s only worsening the cost-of-living crisis.

Container company Contargo GmbH & Co. KG said Friday that a drop at Kaub below 40 centimetres would prompt it to largely discontinue its barge business on the middle and upper Rhine. Some larger vessels are no longer able to pass that point, just west of Frankfurt, according to an official from the WSA, the German state waterways agency.

Companies have been taking steps to prepare. Chemicals maker BASF SE is using more rail to transport goods and has ordered shallow-water barges. Steelmaker ThyssenKrupp AG is using ships with lower drafts to keep its mill in the town of Duisburg supplied.

German utility EnBW Energie Baden-Wuerttemberg AG has enough coal to supply its power stations for the winter, even with disruption to shipments. Another power producer, Uniper SE, has warned that it may have to cut output at two key coal-fired power plants in Germany as it struggles to get fuel supplies along the river.

Truck company Hoyer GmbH hasn’t seen an increase in demand for its services due to the low water levels. Much of its business in the south of the country is on long-term contracts, a spokesman said.