A heatwave in Europe is causing low water levels on the River Rhine — one of the continent's most important shipping routes — which could weigh further on Germany's flagging economy.
In 2018, low water levels on the Rhine made parts of it unnavigable. This caused production to come to a halt in places, increased manufacturing costs and disrupted supply chains in the industrial heartland of Europe.In the third quarter of 2018, Germany's economy shrank by 0.2% before stagnating in the fourth quarter. The decline was partly attributed to low water levels on the Rhine that hampered industry.
There are signs a repeat performance could happen this summer with high temperatures and a lack of rainfall meaning that cargo vessels cannot sail fully loaded on parts of the Rhine, according to Reuters. In turn, that could hit Germany's economy that was dented by similar events in 2018. Ford Fiesta automobiles, manufactured by Ford Motor Co., sit on a barge sailing to Vlissingen, Netherlands, on the River Rhine in Duesseldorf, Germany, on Wednesday, Feb. 13, 2019.In the third quarter of 2018, Germany's economy shrank by 0.2% before stagnating in the fourth quarter. For 2018 as a whole, the German economy grew 1.5% — marking the ninth year of consecutive growth but pointing to a loss of momentum for Europe's largest economy.
With Rhine water levels in 2018 reduced to just 30cm in some parts, this made it unnavigable for larger cargo barges prompting many producers to resort to using other means of transport or smaller barges. Although parts of the river remained usable, many barges were not able to fully load and were forced to ship smaller amounts, pushing freight costs up for producers.
However, the president of Germany's WSV rivers authority has been widely quoted acknowledging there is only so much they can do to prevent the river drying out. "The Rhine is a natural river," Hans-Heinrich Witte said. "There are limits to what we can do to keep it open as an industrial waterway.
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