the rhine river in europe hit by drought could create an economic disaster

The Rhine River in Europe Hit by Drought Could Create an Economic Disaster

Business

Experts have told that significant scorching heat in Europe is causing truncated water levels on the Rhine River. Rhine River is essential shipping routes in the continent. In the previous year, it was difficult to sail through the Rhine river because of low water level. It has caused many problems; such as halt in production, unsettled supply chain, and increase in manufacturing cost of many products. There are indications that such thing could happen again this year due to shortage of rainfall and high temperatures. This might have a huge impact on Germany’s economy. Roughly eighty percent of goods are transported through the Rhine River; therefore, it is Germany’s most vital route.

Products such as gas, oil, and Coal are transported through the River, which is important in many businesses. So, truncated water levels can instantly lead to limitations in manufacturing. There was a decline in Germany’s economy in 2018. It was mainly because of Germany’s car industry facing new standards and lower consumption of products at the country level. Along with it, low water levels were also a factor. The Rhine is one thousand and two hundred kilometers long, and it is the second-largest river in Western and Central Europe. It passes through major cities Rotterdam, Basel, Dusseldorf, and Cologne.

Due to lower levels of water, a lot of barges were not able to fully load, and they were forced to ship smaller amounts. Because of this, freight costs had gone up for manufacturers. According to CCNR, Rhine had twenty-seven percent drop in transportation as compared to last year’s performance. Also another major river the Danube saw a decrease by ten-percent in its transportation. BASF had to shut their plant due to low water levels. BASF had to bear additional cost two fifty million due to interruptions in supply. Authorities of the German government have come together to discuss the issue of low water levels of the Rhine River.

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