Germany news: Rhine levels could cause production cuts

A highway in Lower Saxony, Germany, reopened on Tuesday after being closed for over 12 hours due to wildfire smoke obscuring visibility. The A7 Autobahn, which connects Göttingen and Kassel, saw clean-up operations continue until the early hours of the day. However, the closure had an impact on cargo shipping via the Rhine, according to a leading economic research institute.

Thomas Puls, a transport expert from the German Economic Institute (IW), stated that record low water levels on the Rhine, caused by a prolonged rainfall shortage in Germany, have led to cargo ships being able to carry only around a fifth of their usual load. This reduction in shipping capacity could force companies to cut production, as neither roads nor rail can handle the needed goods.

Covestro, a chemical company, confirmed that the supply disruptions caused by the Rhine shipping issues have already affected their production. The spokesman for Covestro indicated that lifting the ban on Sunday truck usage would only provide temporary relief. As ships are unable to completely replace cargo vessels due to load capacity differences, industries dependent on Rhine shipping may face production cuts.