The German chemical industry has warned that abnormally low water levels on the Rhine and other rivers could force companies to cut production. The reason is rising transport costs and increased pressure on supply chains. The warning came ahead of a conference on the low water level issue, convened on Thursday in Bonn by German Transport Minister Steffen Bilger.
“If ships are forced to carry smaller loads or cannot sail at all, costs rise, supply chains come under pressure, and production is restricted,” said Wolfgang Große Entrup, CEO of the industry association VCI.
According to estimates by the Kiel Institute for the World Economy, low river water levels could cost Germany €1–2 billion in lost economic output in the third quarter. This, in turn, could reduce the country’s GDP by 0.1–0.2 percent. For comparison, the German economy grew by 0.2 percent in the second quarter.
River shipping remains an important channel for delivering raw materials and finished products for Germany’s chemical industry. Reduced navigability of waterways has already repeatedly created logistical difficulties during previous dry periods.