Rhine water levels may force cargo off barges

Hapag-Lloyd says inland transportation severely delayed because of extreme conditions.    Hapag-Lloyd says inland transportation by barge to and from Rotterdam and Antwerp currently is severely delayed as a result of extremely low water levels on the Rhine River.
   It said that the water level of the Upper Rhine area is getting close to a critical point and barge operators are either forced to cease their operations or can only use a third of their capacity.
   “Up until now, Hapag-Lloyd has been able to manage most of the transport requests. However, in the following days we predict delays especially in South Germany, France, Switzerland and Austria,” the company said in an announcement. “These extreme conditions on the Upper Rhine will in the immediate future also affect the Mid and Lower Rhine, where similar measures are to be expected.”
   Hapag-Lloyd said, “Cargo flows from barges will be moved to other modes of transportation, such as rail and truck, resulting in scarce capacities there. Therefore, we might not always be able to accommodate your transport requests within the required time frame. For some lanes, we are not able to accept any new transportation orders.”
   A major operator of inland barge services, Contargo, said Friday according to the forecast of the electronic inland waterway information system Elektronisches Wasserstrassen Informationssystem (ELWIS) in the next few days a water level gauge on the Rhine in Kaub, Germany “is expected to fall below the 0.71 meter mark. This will further reduce the loading capacities of barges. Unfortunately there is already a shortage of available load capacities, and no substantial rainfall is forecast, so that no improvement in the situation can be expected in the short term.”
   Contargo said it is extending a low water surcharge: The surcharge is 175 euros per 20-foot container and 225 euros per 40-foot container if the Kaub gauge measures a depth of .80 to .71 meters and increases to 240 euros per 20-foot container and 300 euros per 40-foot container if the Kaub gauge measures a depth of .70 to .61 meters.
   Contargo moves about 2.2 million TEU annually on a barge, rail, and truck network.
   S&P Global Platts reported earlier this week that water levels on the Rhine were continuing to “drop amid dry, hot weather in Europe, restricting barge traffic and pushing rates along the river higher to new 18-month highs, with further declines in water levels forecast.”
   It reported, “Water levels at Kaub, a key chokepoint on the Rhine in western Germany, have dropped to 82 cm, after falling below 100 cm on July 22, and are forecast to drop another 12 cm in the coming five days,” according to Germany’s Federal Waterways and Shipping Administration (WSV). Last summer, the lowest level at Kaub was 119 cm.
   It said that freight rates for The Rotterdam-Karlsruhe route for 1,000-5,000 mt barges was three times where it stood on June 15.