How the Rhine drought threatens Germany's economic recovery
Germany's inland waterways still move around 5% of the nation's goods. With the Rhine at a critically low level, DW explores how the drought is hitting the economy where it hurts most.
The Rhine River, a vital artery for Germany's industry, is experiencing critically low water levels due to weeks of drought, threatening the country's economic recovery. At Kaub, near Mainz and Koblenz, the water level stands at just 16 centimeters, which is the lowest depth for standard commercial vessels. Ship operators have significantly reduced cargo capacities along the Rhine, often to as little as one-fifth of normal levels.
The Middle Rhine, a 130-kilometer stretch between Mainz and Bonn, is particularly affected, with some areas at historic lows. Jens Schwanen, head of the inland shipping association, warns that the Rhine might become impassable at Kaub before the week's end, effectively splitting the river for commercial traffic. The drought is occurring at a challenging time for Germany's economy, which is already facing weak growth, high energy costs, and fading industrial competitiveness.
Germany relies on rivers and waterways to transport about 5% of its goods, with the Rhine handling 173 million tons in 2024. Every 30 days of low water on the Rhine could lead to a 1% decline in industrial production. The German Economic Institute predicts a 0.4% drop in GDP, erasing this year's growth of 0.5%. Prolonged Rhine navigability disruption could deal a severe blow to the country's fragile economic recovery.
Experts warn of losses up to €2 billion in the third quarter alone, with the steel, chemicals, and energy sectors suffering the most. The BDB predicts that water levels may drop to a single-digit reading at the Kaub gauge, effectively dividing the Rhine in two. Germany's supply chain is facing pressure, with Baden-Württemberg easing truck movement restrictions on Sundays to alleviate congestion.
Transport Minister Steffen Bilger announced measures to support the supply chain, including reducing red tape for heavy loads on roads and better coordination with rail freight services. Scientists believe climate change is making such low-water events more frequent and severe, with the Rhine traditionally relying on Alpine meltwater for support during dry spells.
Written by urgent.news from DW Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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