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Rhine River shipping is hampered by low water levels despite rain in Germany

Commodity traders reported on Friday that low water levels following a heatwave and drought have prevented cargo vessels from being fully loaded up the Rhine in Germany, despite this week's rain.

Traders said that low water levels are hampering shipping along the entire river, south of Duisburg, Cologne and the chokepoint at Kaub.

In general, ships are only able sail half-full. Traders said that cargo is still delivered by multiple vessels, rather than one.

The rain this week only stabilized the water level and did not result in a significant improvement.

Shallow water is when vessel operators increase freight rates in order to compensate for not fully loading the vessels. This increases costs for cargo owners.

The next week is likely to bring more rain and cooler temperatures, but traders expect a stabilisation rather than an improvement in Rhine water levels.

The Rhine is a major shipping route for grains, minerals, ore and coal, as well as oil products including heating oil.

German companies will face production and supply problems in 2022 due to the unusually low levels of water on the Rhine caused by a heatwave and drought. Michael Hogan, reporting; David Goodman, editing

(source: Reuters)