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Due to the severe drop in the water level of the Rhine, it may increase the sea freight

Due to the severe drop in the water level of the Rhine, it may increase the sea freight


It is understood that Europe is experiencing the worst drought in five hundred years. The unusually hot and dry weather has caused the water level of the Rhine River, an important European waterway, to be very low, forcing ships to reduce load and suspend sailing on some key sections of the river, which increases freight costs.


Industry insiders pointed out that the biggest impact on Rhine transportation is that the impact of dry bulk container cargo is less. The increase in cost after the goods are transported by rail/road has also reduced the speed of the decline in ocean freight rates to a certain extent. The container shipping company pointed out that although there are problems such as inflation and lower purchasing power, the third quarter is a traditional peak season. The average loading rate of flights on the Asia-Europe route is about 95%. Shipping is $4971.


The Rhine River is an important shipping channel in inland Europe. It flows from the Swiss Alps through the German industrial heartland into the North Sea. It is the main transportation route for grains, chemicals, coal and other products. It is also between industrial producers and North Sea ports such as Rotterdam and Amsterdam. important transport channels.


Recently, the water level of some river sections in Germany dropped to 32 cm. In order to prevent the loading of some cargo ships from being grounded, the loading capacity of some cargo ships was forced to be reduced to about a quarter of the normal capacity. As a result, the freight rate was pushed up by more than five times. Among them, the upper reaches of the river were in particularly serious conditions. Barge operations Traders started charging a low-water surcharge of 589 ($601) per TEU and 775 ($792) per 40-foot container.


Some shipping companies pointed out that the cargo in southern Germany has begun to be unloaded at the port of Rotterdam. The transportation costs are completed by rail or land transportation of three or four hundred kilometers. Therefore, some chemical plants along the Rhine River, imported coal or exported from Europe. Transportation costs such as lumber will increase even more. The Rhine shipping bottleneck is "at a bad time" for European supply chains as Europe is dealing with severe port congestion. This is adding to the woes for Germany, which is dealing with high inflation, supply chain disruptions and soaring natural gas prices following the Russian-Ukrainian conflict.


The German government recently released a draft decree planning that if the water level of the Rhine River falls further, the transportation of materials and equipment needed for energy production will be a priority for the country's railway network, which will also affect the transportation of other goods.


Shenzhen Xunlaitong specializes in shipping export from Shenzhen to Australia & New Zealand, Germany, Netherlands and more business