Rhine water levels fall to new record low, stalling fuel logistics

Water levels on the Rhine river dropped to new record lows, hindering fuel tanker deliveries and delaying traffic ahead of peak winter demand. The German water authority reported the low levels on October 1, following a summer of record temperatures and droughts across Europe. A car carrier ship ran aground at Dusseldorf harbor, and record low water levels in parts of the lower Rhine hindered traffic.

Swiss heating oil costs hit their highest since 2022 in September, climbing 8% from the previous month. Only two specialist chemicals barges made it through the Kaub crossing on October 1, with regular vessels having to wait for water levels rising above 173 cm. Refineries like Shell's 190,000 barrels/day Godorf and 316,000 b/d Karlsruhe/Miro plants experienced a third-week drop in loadings.

Barge rates from Amsterdam-Rotterdam-Antwerp hub to Karlsruhe are currently €200/mt, nearly ten times their rate in January. The water authority forecasts a slow recovery in levels, taking until October 5 to rise above 10 cm. As winter heating oil season approaches, traders worry about lasting disruption to inland trade, with limited capacity to shift products to rail and pipeline logistics.

Low Rhine water levels could add higher costs and more uncertainty to the already pressured German economy.