Economic Hot Topic: Europe Faces Severe Water Shortage, 'Reaching Physical Limits'! Gas Stations in Germany in Crisis – Fully Analyzed with 9 Interactive Charts

This summer, Europe is facing its most severe drought in recent years, particularly affecting two vital rivers—the Rhine and the Danube—whose water levels have dropped rapidly, causing serious economic disruptions. Near Kaub, Germany, the water level of the Rhine River fell to just 9.5 inches, severely restricting inland freight transport. At one point, the river gauge in this section dropped to less than 3 inches. Although vessels can still navigate, their cargo capacity has been drastically reduced, diminishing the economic viability of shipping. Today, ships can only carry 20% to 30% of their normal cargo load to avoid the risk of running aground. This capacity constraint means more ships are needed to transport goods, driving up freight rates.

Jens Schwanen, Managing Director of the German Federal Association of Inland Navigation, which represents Germany’s commercial inland shipping industry, stated, 'Our operations have reached the physical limits of what is possible.' German steel producer ThyssenKrupp reported that low water levels forced it to halt operations of its main barge fleet, leading to reduced pig iron output at its blast furnaces in Duisburg. Despite switching to smaller rental vessels, the delivery of raw materials remains constrained. The Wall Street Journal used nearly ten dynamic charts to deeply analyze the challenges Europe is facing. VVIP members can unlock the full report. Join the discussion on global economic and political developments and investment markets. Join the 'Hot Topic! Wall Street' LINE community to exchange insights with industry elites (password: WSJWSJ).