[Dargo]

The exceptionally low water level in the Rhine is worrying both the Netherlands and Germany, especially now that the section of the river near the German town of Kaub, a well-known bottleneck, threatens to become unnavigable next week. Dutch exporters and inland shippers can now only use fifty percent of the carrying capacity of their ships. The question is whether coal from the Netherlands will soon be able to reach much of Germany - which is in an energy crisis due to limited Russian oil supplies. "Low water is not unique, we have roadmaps for that. But there is a perfect storm of developments going on, and there is no end in sight. All those things together do add up to a very big concern," said inland shipping specialist Arno Treur (NPRC).

For example, there are fewer ships available, because the German demand for coal is high, now that the power plants there have to start running harder again. In addition, ships have been sold to Eastern European countries to transport grain from Ukraine. Low water as you see now has economic consequences for all of Europe, says sector economist Albert Jan Swart of ABN Amro. "Inland shipping alone brings European shippers and port companies some 80 billion euros annually. Two-thirds go via the Rhine: it really is a lifeline."

The low water level affects German industry in particular, says Swart. According to his estimate, about eighty percent of the coal used in Germany comes from the Netherlands. "If insufficient coal and other raw materials can be transported, it will cause damage particularly there. Germany is our most important trading partner. There are also economic consequences for the Netherlands, but fewer."

This is not the first time that the level of the Rhine has been low: in 2018, the river was unnavigable for months. The damage to Dutch trade and production companies amounted to some 371 million euros as a result, the Erasmus University calculated. It cost the German economy more: about 5 billion euros, according to the Kiel Institute for the World Economy. "The Netherlands is much less vulnerable because our factories are more often located near seaports: they are not dependent on the state of the rivers," says Swart.

We do need to change our energy production, fossil fuels will only cause more droughts in Europe because it triggered climate change.