HAMBURG- Water levels on the Rhine in Germany have fallen again after recent dry weather and cargo vessels cannot sail fully loaded, commodity traders said on Monday.
Shallow water continues to hinder shipping on most of the river in Germany including Duisburg, Cologne and the chokepoint of Kaub.
But weekend showers in some river catchment areas and rain forecast this week are expected to raise water levels, they said.
Shallow water means vessel operators impose surcharges on freight rates to compensate for vessels not being able to sail fully loaded, increasing costs for cargo owners.
The Rhine is an important shipping route for commodities such as grains, minerals, ores, chemicals, ores, coal and oil products, including heating oil.
German companies faced supply bottlenecks and production problems in summer 2022 after a drought and heat-wave led to unusually low water levels on the river.
But repeated rain this summer kept Rhine water levels high, enabling shipping to mostly operate normally until late August.
Development of Germany’s foreign trade business is likely to remain subdued for the foreseeable future, the economy ministry said in its monthly report.
“The latest data on exports of goods and services are once again disappointing and the early indicators for German foreign business are also largely subdued,” it said.
The weakness of the German economy is more persistent than initially expected, German Economy Minister Robert Habeck said.
The German economy unexpectedly contracted in the second quarter, sparking recession fears again and showing the continuing struggles of the euro zone’s biggest economy.
As an export-oriented economy, Germany is deeply affected by the economic weakness of its second most important trading partner, China, Habeck said.
Other problems are a lack of investment in infrastructure and a late response to the shortage of skilled workers, Habeck said. “All of this is now having an impact and cannot be resolved with a snap of the fingers,” he added.
