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NOS News•today, 19:35
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The exceptionally low water level in the Rhine is a cause for concern for both the Netherlands and Germany, especially now that the part of the river near the German town of Kaub, a well-known bottleneck, threatens to become unnavigable next week.
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Dutch exporters and inland vessels can now only use fifty percent of the loading capacity of their ships. The question is whether coal from the Netherlands will soon be able to reach a large part of Germany – which is in an energy crisis due to the limited Russian oil supplies.
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“Low water is not unique, we have scenarios for that. But there is a perfect storm ongoing developments and the end thereof is not yet in sight. All those things together are a very big concern,” inland shipping specialist Arno Treur (NPRC) said in the NPO Radio 1 program on Wednesday. Money or your Life.
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For example, fewer ships are available, because the German demand for coal is big, now that the power stations there have to run faster again. In addition, ships have been sold to Eastern European countries to transport the grain from Ukraine.
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‘lifeline’
Low water, as you can see now, has economic consequences for the whole of Europe, says sector economist Albert Jan Swart of ABN Amro. “Inland waterway transport alone supplies European skippers and port companies every year about 80 billion euros. Two thirds goes via the Rhine: it really is a lifeline.”
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The low water level mainly affects German industry, says Swart. According to his estimate, about eighty percent of the coal used in Germany comes from the Netherlands.
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“If insufficient coal and other raw materials can be transported, this will especially damage there. Germany is our most important trading partner. There are also economic consequences for us, but less.”
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NOS
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It is not the first time that the level in the Rhine is low: in 2018 the river was unnavigable for months. As a result, the damage to Dutch trading and production companies amounted to approximately 371 million euros, the Erasmus University estimated.
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It cost the German economy more: about 5 billion euros, aldus het Kiel Institute for the World Economy. “The Netherlands is much less vulnerable because our factories are more often located at seaports: they are not dependent on the levels of the rivers,” says Swart.
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It remains to be seen whether the low water level will last this time as well. Germans are already noticing that electricity prices are going through the roof, says Swart. “And certainly if this drought worsens, those prices are really passed on to companies and also to consumers.”
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Grind an industrial sand
The Dutch economic consequences are therefore mainly in export. But it is expected that contractors and construction companies in the Netherlands will also have problems. “If the low water continues, we expect major disruption,” says Ab Cheribi of the Dutch Association of Suppliers of Building Materials. “We will have shortages in the near future, especially with gravel and industrial sand.”
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The owner of this synthetic turf company explains how the low water level in the Rhine affects his business:
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‘Where once 1 ship was enough, we now have to divide the same cargo over 2 ships and 2 days’
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Even if ships can be found, customers no longer want to pay the price. “We have to pay double, sometimes triple rates to arrange extra ships,” says Pim van Baaren, director of Nieuwpoort Grind en Zand. “Delivery is therefore becoming increasingly difficult and the price is increasing. At a certain point there will be a tipping point.”
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recurring problem
In terms of drought, this summer will in any case be worse than that of 2018, thinks Sunniva Fluitsma of the Algemeene Schippers Vereeniging. “This year it started earlier than then and it seems far from finished.” Then the problems only started in September, now already in August.
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And this will probably not the last be a dry summer. Experts therefore believe that there is a good chance that a low water level will become a recurring problem for inland shipping, as a result of which structurally less transport by water will be possible.
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Trust plays a role in this, says Fluitsma. “If we can’t guarantee in the long term that we can get cargo from A to B, then our customers will think: do I want to continue with water transport in these countries? Then we will lose our market share.”
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“River or highway?”
According to director Van Baaren, alternatives are also not easy to arrange. “Not only do you need a lot more trains and trucks to transport the same amount, but they’re also unavailable. If you order a truck now, it won’t be your turn for a year.”
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But even if it is possible again, we should not want that, according to Fluitsma. “You need fourteen trucks for a large inland vessel.” More transport on highways will lead to more traffic jams, emissions and accidents, she says. “And let’s face it, you’d rather look at a river than at a highway, wouldn’t you?”
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