Falling water levels on Germany's Rhine River are increasing transport costs and disrupting logistics, adding pressure on the country's industrial sector, according to a Reuters report, while local steelmaker Thyssenkrupp Steel has slightly reduced blast furnace production due to limited raw material supplies.
Thyssenkrupp Steel is adjusting production
Thyssenkrupp Steel told Reuters that Worsening low water levels on the Rhine are affecting the supply of raw materials to its Duisburg smelter.
The company said it has slightly reduced blast furnace production due to limited raw material inflows. It has also suspended its own barge operations and is instead chartering shallower draft vessels to continue supplies. The company added that deliveries to customers are not currently at risk.
Freight costs are rising as ships reduce capacity
The Rhine is one of Germany's most important transport routes for raw materials, fuel products and manufactured goods.
A heat wave and limited rainfall across Western Europe have led to a sharp drop water levels, forcing cargo ships to operate at significantly reduced capacity. At current levels, a typical Rhenish container ship can navigate the Kauba bottleneck carrying less than 20 percent of its normal cargo. Ship operators have responded by introducing shallow water surcharges, increasing transport costs for cargo owners.
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