The German Institute of Economic Research (IW) has issued a warning regarding the potential consequences of low water levels on the Rhine River. Thilo Schaefer, an IW climate change expert, told the “Rheinische Post” that the freight transport on the Rhine is highly sensitive to dropping water levels. Since the draft below the waterline is diminishing, inland vessels will be able to transport significantly less cargo. This directly increases transport costs and places greater pressure on road and rail as alternative routes. A complete shutdown of inland shipping, the IW warns, would require an extra 3,000 tank trucks daily. However, such capacities are currently unavailable, meaning that real bottlenecks in supply chains are imminent. For the German economy, this situation could become a noticeable burden on the economic climate.
Economy / Finance
