Rhine Set for More Disruption After Hitting Lowest on Record

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Or sign-in if you have an account.tbz{vp55ny1]d8nn6zsuvco6_media_dl_1.png Natural Earth(Bloomberg) — Disruptions on one of Europe’s most important trade arteries are poised to intensify after the Rhine fell to the lowest on record ahead of the peak summer dry season, with conditions likely to worsen in the weeks ahead.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe barge clearance level at Kaub, a choke point for vessels heading to southern Germany and Switzerland, dropped as low as 21 centimeters (8.3 inches) overnight, the lowest since records began in 1880. It edged up slightly Tuesday morning, but is unlikely to offer lasting relief, as the Rhine typically bottoms out later in the summer. Forecasts already point to a drop to 17 centimeters by Saturday.Across Europe, unusually low river levels are already disrupting trade, forcing curbs to nuclear power generation and exposing how vulnerable the region’s infrastructure remains to increasingly frequent droughts. For now, many companies are falling back on workarounds to prevent larger disruptions, but may struggle to do so if levels drop further.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“The timing is particularly concerning,” said Rico Luman, senior sector economist for transport and logistics at ING Groep NV. Such shallow water levels this early in the season are not only a clear sign of mounting climate-related risks, but are affecting businesses that depend on the waterway for transport, he said.Freight rates have risen sharply as barges reduce cargo loads to navigate the shallow river. The cost of shipping diesel from Rotterdam to Karlsruhe has climbed to the highest since Bloomberg began compiling the data in 2009. Some of the workaround solutions implemented by companies in recent years have involved lowering shiploads, building up raw material inventories or switching to alternative means of transport. Such measures won’t eliminate the impact, but they can significantly reduce the damage, said ING’s Luman. Over the longer term, greater resilience may require changes in vessel design, fleet composition and river infrastructure, he added.Chemicals giant BASF SE said it’s monitoring the situation very closely after falling water levels caused some supply bottlenecks, while Shell Plc has shifted fuel deliveries from its Rhineland refinery to rail and truck. Lanxess AG has set up a crisis management team to deal with logistical disruptions, and Evonik Industries AG said the situation has impacted production at its Marl Chemical Park.The Institute for the World Economy estimates that persistently low Rhine water levels could damp Germany’s gross domestic product by between 0.1% and 0.2% between July and September.For now there is little relief in sight for the Rhine. Heat wave conditions have moved across the continent, spreading from western Europe to the southeast, where temperatures are set to rise 5C to 8C above normal through the end of the week, according to analysis from meteorologist Richard Martin-Barton at MetDesk.Isolated thunderstorms are possible from France through Benelux countries into Germany, with more widespread rain and storms from Austria through the Czech Republic and Poland into Belarus, but much of mainland Europe is forecast to be relatively dry, said Martin-Barton.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Any rainfall will help the Rhine, but brief downpours are unlikely to quickly reverse this summer’s long-term water deficit. Dry soils will absorb much of it before it reaches the river, while persistent heat continues to increase evaporation and plant water use across the basin, said David Hannah, a professor of hydrology at the University of Birmingham.Romania has resorted to extraordinary measures: The military detonated a rock formation in the Danube on Monday to redirect water toward the Cernavoda nuclear power plant after low water levels forced one of its two reactors offline. As a result, the water level at the plant increased by 2 centimeters from the previous day, instead of an expected 2 centimeter drop, the country’s defense minister said Tuesday.In Hungary, the drought has disrupted energy supply. The country shut down its only nuclear power plant last weekend after low Danube water levels left insufficient cooling water for the reactors.—With assistance from Rachel Graham, Irina Vilcu, Eamon Akil Farhat and William Mathis.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.