Low water levels on the Rhine River in Europe are causing transportation disruptions for shipments of petroleum products by barge, resulting in higher than usual freight costs and prices in some markets upriver.

The disruptions are occurring when markets typically build inventories of distillate fuel for space heating during the winter.

The Rhine runs northwest from Switzerland through Germany, France and the Netherlands into the North Sea and it serves a major petroleum transportation corridor. Navigable portions connect refinery and petroleum trading centers of Amsterdam and Rotterdam in the Netherlands and Antwerp in Belgium to inland markets.

Source: EIAAccording to the Energy Department's Energy Information Administration (EIA), water levels on the Rhine River fluctuate with seasonal rainfall, and both high and low water levels can create problems for barges.

For example, high water levels on the Rhine may put barges at risk of hitting bridges. Low water levels mean barges risk becoming stuck or hitting the river bottom. Within safety and operational constraints of the water levels, barges adjust the amount of cargo they carry to balance bridge clearance and deep draft restrictions. Low water levels mean barges must carry less cargo, increasing the freight rate per unit of cargo, EIA says.

Map of the Rhine River. Source: EIAWater levels on the Rhine River measured at Kaub, Germany — near the Rhine’s midway point — have recently reached historic lows. The average water level at Kaub in October was 1.7 ft, compared to the five-year average level of 4.8 ft. By contrast, water levels measured early in 2018 were at more than 20 ft.

Rhine River barge. Credit: Alf van Beem [CC0], from Wikimedia CommonsLow water levels on the Rhine since July 2018 have resulted in increased barge freight rates. The estimated rate for a cargo of distillate fuel (heating oil or diesel) from Rotterdam to Basel, Switzerland, increased from about $5 per barrel in July to more than $35 per barrel in late October.

Alternatives to shipping products on the Rhine River can be costly, the EIA said. Europe's petroleum product pipeline infrastructure is not as extensive as in the U.S., leaving relatively more expensive transport options such as rail and long-distance trucking as the only alternatives.

(Read "A Shipping Rebound on New York's Canals")