
Germany's key Kaub gauge is forecast to fall to 18 centimeters, below the previous 2018 record, worsening Rhine shipping disruption and adding to broader concerns about European growth and industrial supply chains.
An intensifying drought is worsening disruption on the Rhine, with Germany's key Kaub gauge forecast to fall to 18 centimeters on Aug. 7, below the previous record-low daily average of 25 centimeters set in October 2018. The low water is constraining cargo vessels to sharply reduced loads, lifting freight rates and surcharges, delaying deliveries and increasing the risk of disruption for chemicals, steel and petroleum supply chains. Economists say prolonged bottlenecks could trim German third-quarter GDP by 0.1% to 0.2%, while the broader European drought is also straining energy generation, river transport and growth across the region.