By Joe Wertz
Sep 28, 2026 (Bloomberg) – Water levels in the Rhine River dropped to record lows over the weekend, affecting transportation on this vital shipping route for energy and industrial goods in central Europe.
On Saturday, the water level at Kaub fell to 3 centimeters (1.2 inches) below a crucial limit that ship operators use to decide how much cargo vessels can safely carry without the risk of damage or running aground.
Fortunately, the levels at this critical point for coal, fuel, and industrial goods improved slightly over the weekend, climbing back to 2 centimeters on Monday, as reported by the German Federal Waterways and Shipping Administration.
The cost of shipping diesel from Rotterdam to Karlsruhe rose 15% on Monday, following a more than 100% increase this month due to ongoing dry conditions.
The Rhine is home to major chemical plants, refineries, and steel factories, including BASF SE, Bayer, Covestro AG, and Shell plc. It is a key transportation route linking European factories to global markets.
The hottest summer in Western Europe has led to persistent heat and drought, significantly reducing water flow into the Rhine. This prolonged issue has required some chemical manufacturers to limit production or declare force majeure on certain products, further straining Europe’s chemical industry as it faces low demand, high energy costs, and increasing competition.
Companies along the Rhine are now dealing with the uncertain reliability of access to this waterway, highlighting a split between those who were prepared for drought and those who were not.
Arne Lohmann Rasmussen, head of research at Global Risk Management, mentioned that replacing the freight capacity of the Rhine would not be easy, likely needing around 3,000 tanker trucks daily to make up for oil shipments alone.
“Low Rhine water levels are the last thing the German economy needs,” he stated in an analysis shared on LinkedIn. “Rain will eventually raise the Rhine again, but the longer-term issue remains: low water is no longer just a rare weather phenomenon. It is becoming a regular economic, logistical, and regional price concern.”
Forecasts from the German Federal Institute of Hydrology suggest that water levels at Kaub may drop below the shipping threshold again on Tuesday evening. Dry weather is expected to persist in the region this week, although river levels are predicted to start rising again by early October.