Germany’s steel industry faces major crisis as drought paralyses Rhine shipping

The water level on the Rhine at Kaub has dropped to just 31 centimetres, crippling barge traffic and threatening the heart of Germany’s steel industry. The low water levels have forced steel giant Thyssenkrupp to withdraw its push-barge fleet, while transport costs for raw materials have tripled in just weeks.

According to data from the German hydrological service Pegelonline, the Rhine at Kaub – the narrowest and most critical point for inland navigation – has reached a depth of only 31 cm. Optimal navigation requires 250 cm, allowing fully laden vessels to pass. At 135 cm, barges can only carry half their usual load; at 75 cm, just a quarter. Currently, barges are being loaded to a mere 15% of capacity.

The situation is especially dire for the steel industry concentrated in Duisburg, Europe’s largest inland steel hub. Thyssenkrupp Steel and Salzgitter operate major plants there, relying on the Rhine to bring in iron ore, coal and coke. „Our fleet of push barges has been taken out of service due to the low water level,” a Thyssenkrupp Steel spokesman told S&P Global last week.

Threat to steel production in Duisburg

Duisburg’s blast furnaces are heavily dependent on uninterrupted raw material deliveries. While finished steel products can be shifted to trucks, bulk commodities like iron ore and coke are far harder to move overland. Rail transport could theoretically provide an alternative, but ongoing infrastructure works and capacity bottlenecks sharply reduce its availability.

A distributor quoted by Eurometal noted that the problem is hitting Duisburg particularly hard. The last time such a low water level was recorded was in 2018, when the Rhine at Kaub fell to just 25 cm. Experts warn the current drought could push the level even lower in the coming days.

Rising costs and wider consequences

The crisis is not limited to steel. Refineries and gas importers are also feeling the pinch. According to Argus Media, lower barge loads are reducing supply from local refineries at a time when summer demand for fuel is rising due to increased agricultural work and the construction season.

Reuters reports that the cost of shipping crude oil by barge from Rotterdam to Karlsruhe has jumped from €45 per tonne in June to between €120 and €125 in late July. This threefold increase is feeding through to higher fuel prices at the pump, compounding the impact of the expiry of German fuel tax cuts at the end of June.

The situation is a stark reminder of how vulnerable Germany’s industrial backbone is to extreme weather. With the Rhine expected to remain low for weeks, both Thyssenkrupp and Salzgitter are scrambling to secure alternative transport, but options are limited and expensive.

Źródło: WNP.PL, Fot. Thyssenkrupp Steel / materiały prasowe

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