Water levels on the Rhine have fallen to near 25 centimetres, the lowest in eight years, as extreme heat and drought grip western Europe. The shallow water forces vessels to carry far less cargo, raising transport costs and slowing the flow of raw materials to factories along Germany’s most important inland trade corridor.

Economists warn the disruption could shave 0.2 percentage points off German growth. Deutsche Bank’s Marc Schattenberg said shifting the lost volumes to rail or road is difficult because key connections are under construction. Chemical giants BASF, Covestro and Evonik, which cluster on the riverbanks, are especially exposed.

BASF cautioned that continued low water may trigger force‑majeure notices and product shortages, though it has specialised ships and alternative routes. Covestro built up raw‑material stocks weeks ago and switched to lower‑draft barges, accepting higher fuel costs. Thyssenkrupp limited hot‑metal output in Duisburg but secured supply by chartering shallow‑draft vessels.

The crisis extends to the Danube, where record lows in Hungary will force the Paks nuclear plant — supplying nearly half the country’s electricity — to shut down within days, and Romania has already idled one reactor at Cernavodă.