Drought Impacts Chemical Industry: Low River Levels Threaten German Trade and Competitiveness
Economy / Finance

Drought Impacts Chemical Industry: Low River Levels Threaten German Trade and Competitiveness

The low water levels in German rivers are placing particular pressure on the chemical industry, according to the German Chambers of Industry and Commerce (DIHK). While the Rhine is frequently used to transport low-value bulk goods such as coal, sand, and minerals, which have played a marginal role in Germany’s foreign trade, its significance extends far beyond that. The Rhine also connects numerous large industrial sites within the chemical sector, where petrochemical precursors undergo further processing.

As a result, changes to the overall trade volume of chemical products are anticipated. This volume stood at 235 billion Euros in 2025. The broader economy is expected to feel the repercussions primarily through escalated transport costs and subsequent price increases for domestically produced goods. A spokesperson noted that this situation further strains the international competitiveness of German companies.

The DIHK warned that if measures are not implemented to improve the resilience of the waterways, inland shipping will be unable to capitalize on its advantages in the future. Furthermore, the institute stated that this trend is detrimental to both climate protection and the economy.