Record low water levels on the Rhine could trigger a chain reaction in German industry, including the steel sector, according to a statement by industry associations.
The German Steel Recycling and Disposal Association (BDSV), the German Association of Secondary Raw Materials and Waste Management (bvse), and the German Association of Metal Traders and Recyclers (VDM) have issued a joint call for additional support.
“The Rhine’s water level near Kaub has fallen below its 2018 low and in critical sections of the river, inland cargo vessels can only carry a third of their usual volume,” they warn.
“The shutdown of one of the main transport arteries threatens to have a knock-on effect on the country’s entire economy. A threefold reduction in ship cargo capacity requires three times as many voyages. This dramatically increases the cost of transporting a ton of cargo and creates an acute shortage of ships.”
According to BDSV, around 120.7 million tonnes of freight were transported for the industry in 2024, with 49.3% by rail, 31.6% by inland waterway, and only 19.2% by road.
“Overall, more than 81% of the volumes depend on water and rail. Approximately 38mt of metallurgical freight are transported by river annually. Hypothetically, if even half of this volume were rerouted to roads, more than 760,000 additional trucks would be required per year (more than 63,000 per month). This proves that road transport is unable to quickly replace river barges,” it adds.
Rail transport is also on the verge of exhausting its capacity, as steel companies are forced to share available railcars with the chemical, energy, construction, and agricultural industries, the association notes.
“Largest steel-consuming industries like the automotive, mechanical engineering, and construction employ approximately four million people,” it adds. “Delays in raw material or finished metal deliveries threaten production disruptions and investment freezes.”
The situation is complicated by rising steel production in the first half of 2026, when Germany produced 18.6mt of steel, up by 8.9% year-on-year, Kallanish notes.
Plants require an uninterrupted supply of scrap and the removal of products. Logistics disruptions are leading to warehouse overflows at processing plants and raw material shortages at the plants, the associations say.
They are calling on German authorities to immediately coordinate the operation of all modes of transport, expedite the approval of alternative routes, and regulate repairs. They add that in the long term, the country needs more resilient infrastructure like developing waterways, building shallow-draft vessels, expanding railways and multimodal terminals.
