Low water levels hamper Rhine river shipping routes for German firms

German industrial companies are adjusting their logistics operations as low water levels on the Rhine River begin to affect shipping routes used for raw material transport.

German steelmaker Thyssenkrupp as well as chemicals companies Covestro and Lanxess said they were taking steps to maintain supply chains and production despite falling river levels, the Rheinische Post newspaper reported on Tuesday.

Thyssenkrupp, which relies on the Rhine to transport thousands of tons of raw materials daily — including iron ore and coal — is loading its vessels with smaller shipments to reduce draft and increase trip frequency.

Covestro has also introduced measures to keep production running smoothly. The company is deploying additional vessels, increasing delivery frequency and managing stock levels by building up raw materials while reducing finished product inventories.

The low water levels are caused by reduced rainfall and minimal meltwater from the Alps, due to less snow in the Rhine's catchment area.

The 1,230 kilometre Rhine river serves as a vital trade route in Germany, handling the bulk of the country's inland shipping, including oil products, coal and ores.

The RWI-Leibniz Institute for Economic Research warned that persistently low Rhine levels could pose a risk to economic growth. One of its researchers called for faster use of infrastructure funding to deepen parts of the river to secure future transport routes.