A drone picture shows the banks of the river Rhine during a period of low water level in Cologne, Germany

A drone picture shows the banks of the river Rhine during a period of low water level in Cologne, Germany, July 30, 2026. REUTERS/Stephane Nitschke TPX IMAGES OF THE DAY

Rhine Drops Below Shipping Threshold as Freight Costs Rise

Bloomberg
Total Views: 148
September 28, 2026

By Joe Wertz

Sep 28, 2026 (Bloomberg) –Water levels in the Rhine River plummeted to record lows over the weekend, threatening transport on a key shipping corridor for energy and industrial commodities across central Europe.

The water level at Kaub fell to 3 centimeters (1.2 inches) below a key threshold on Saturday, a benchmark used by ship operators to determine how much cargo vessels can safely carry without risking damage or running aground. 

Levels at the critical chokepoint for coal, fuel and industrial commodities recovered from the dip into negatives over the weekend, reaching 2 centimeters on Monday, according to data from the German Federal Waterways and Shipping Administration.

The cost of shipping diesel from Rotterdam to Karlsruhe climbed 15% on Monday, after more than doubling this month as dry conditions lingered.

The Rhine is dotted with major chemical plants, refineries and steel factories from BASF SE, Bayer, Covestro AG and Shell plc and serves as an important transportation route connecting European factories with global markets.

Western Europe’s hottest summer has brought repeated waves of heat and drought, sharply reducing water flows into the Rhine. The months-long disruption has forced some chemical producers to curb output or declare force majeure on certain products, adding to the strain on Europe’s chemical industry as it grapples with weak demand, high energy costs and intensifying competition.

Read More: Low Rhine Levels Force Companies to Adapt to New Climate Normal

Firms along the Rhine are confronting the possibility that reliable access to the waterway isn’t assured, revealing a divide between those that have prepared for drought and those that haven’t. 

Arne Lohmann Rasmussen, head of research at Global Risk Management, said replacing the Rhine’s freight capacity would be difficult — likely requiring 3,000 daily tanker trucks to offset oil cargoes alone.

“Low Rhine water levels are the last thing the German economy needs,” he wrote in an analysis posted to LinkedIn. “Rain will eventually raise the Rhine again. The longer-term problem remains: low water is no longer only a rare weather event. It is becoming a recurring economic, logistical and regional price risk.”

Water levels at Kaub could again sink below the shipping threshold Tuesday evening, according to forecasts from the German Federal Institute of Hydrology. Dry conditions are expected across the region this week, but river levels are poised to start rebounding by early October.

© 2026 Bloomberg L.P.

Back to Main