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Low Rhine water levels threaten Germany’s economic growth

Context: Water levels on the Rhine river are very low because of unusually hot and dry weather, preventing many vessels from navigating.....

Context: Water levels on the Rhine river are very low because of unusually hot and dry weather, preventing many vessels from navigating the critical European shipping route fully loaded.

  • Water levels on the Rhine River are very low because of unusually hot and dry weather, preventing many vessels from navigating the critical European shipping route fully loaded.

About Rhine river

  • It is a waterway of western Europe culturally and historically one of the great rivers of the continent and among the most important arteries of industrial transport in the world. 
  • It rises in two headstreams high in the Swiss Alps.
  • It flows from two small headways in the Alps of east-central Switzerland north and west to the North Sea, into which it drains through the Netherlands.
  • It is a major route for products ranging from grains to chemicals and coal.
  • It is an important link between industrial producers and global export terminals in North Sea ports such as Rotterdam and Amsterdam, while canals and other rivers link the Rhine to the Danube, making it possible to ship to the Black Sea as well.

Why is Rhine River Shipping Important?

  • Flowing from the Swiss Alps to the North Sea via German industrial heartlands, the Rhine is a major route for products ranging from grains to chemicals and coal.
  • It is an important link between industrial producers and global export terminals in North Sea ports such as Rotterdam and Amsterdam, while canals and other rivers link the Rhine to the Danube, making it possible to ship to the Black Sea as well.

What Happens When Water Levels are Low?

  • When water levels fall, cargo vessels have to sail with reduced load to prevent them running aground.
  • Some shippers have said in recent days they were loading about a quarter of the regular amount of freight onto ships.
  • This means more ships are needed to move consignments that would normally fit into a single vessel, adding to freight costs.
  • Shipping companies can usually pass on extra costs to cargo owners, who in turn pass on higher costs to customers.
Factors Affecting Rhine river
  • Radical weather patterns and their results—including too little rain or too much of it—are another result of climate change.
  • Climate changes: Rising temperatures, more frequent extreme storms and changes in season precipitation rates will impact lakes, rivers and streams.
  • Warmer temperatures in lakes and rivers harm the supply of oxygen—and without adequate oxygen supplies, fish die.
  • Rising Heat Waves in Europe.

What is the Impact on Germany’s Economy?

  • The low Rhine water levels are expected to increase costs for chemicals companies such as BASF and could lead to production cuts.
  • Low water levels lead to transportation disruptions that cause a significant and economically meaningful decrease of economic activity
  • Coal power plants – now back in fashion as an alternative to Russian gas supplies – also face supply shortages with boats unable to take on enough coal. Utility Uniper has warned of output cuts at two of its plants that make up 4% of Germany’s coal-generated electricity capacity.

What is Being done to Alleviate the Situation?

  • Companies are shipping more goods by truck or train to make up for the shortfall on the Rhine.
  • Germany plans to give the transportation of materials and equipment essential for energy production priority on the country’s rail networks should low water levels on the Rhine fall further, a draft decree showed on Sunday.
  • Shipbuilders have also been working on vessel designs that can cope with lower water levels.

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