Europe's Heat Wave Disrupts Key River Shipping Route

Summary

Bloomberg's Oliver Crook reports from Kaub, Germany, where Rhine water levels have fallen to the lowest since records began in 1880. The drying waterway threatens operations for Rhine-dependent companies such as BASF and Thyssenkrupp and could cut German economic growth. Governments are suspending Sunday truck bans to help move goods, but the duration of the crisis remains the key question.

• Rhine water levels at Kaub are at 11 cm, below the prior record of 25 cm set in 2018.
• Low water can effectively bisect the Rhine and disrupt shipping for German industry.
• BASF may not rule out force majeure; Thyssenkrupp reports issues moving raw materials.
• ING estimates the disruption could reduce German growth by 0.3 percentage point, about half of expected growth.
• German states are allowing Sunday truck driving to compensate for reduced barge capacity.
• The crisis is occurring unusually early in August, raising the risk of prolonged impact.