With Rhine levels hitting record low amid a lack of rain, a leading German industrial organization said the dry spell could have a devastating consequences for the economy.

Water levels on the Rhine River are affected by sustained hot and dry weather, which means vessels navigating the shipping route cannot be fully loaded.

What is Germany industry saying?

The deputy managing director of the Federation of German Industries (BDI), Holger Lösch, said companies were already preparing for the worst.

"The prolonged dry period and the low water levels are threatening the security of supply for industry," said Lösch.

"The already tense economic situation in the companies is getting worse," he added.

Lösch said that shifting cargo from river to rail or road transport was difficult because of limited capacity on the rail network and a lack of truck drivers.

He said the low river levels could trigger supply bottlenecks and mandatory short-time work, with some industry sectors grinding to a halt.

"It's only a question of time before facilities in the chemical and steel industry have to be switched off, petroleum and construction materials won't reach their destination, and high-capacity and heavy-goods transports can't be carried out anymore," he said.

The economic prognosis for much of German industry has already been gloomy in recent months, with soaring inflation amid energy supply concerns stemming from Russia's war in Ukraine.

The already-bleak energy situation could also be exacerbated, Lösch warned, as ships carrying coal and gasoline along the Rhine are affected.

Why is the Rhine so important?

The Rhine — which flows from the Swiss Alps through Germany's industrial heartlands and onward to the North Sea — is a major route for a variety of products including grains, chemicals, and coal.

It forms a vital link between producers and global export terminals at North Sea ports such as Rotterdam and Amsterdam. Canals and other rivers also link the Rhine to the Danube River, making it possible to ship to the Black Sea.

The Rhine's level at Emmerich, near the Dutch border, fell by a further 4 centimeters (1.6 inches) in just 24 hours by Tuesday morning.

The shipping lane itself still has a depth of almost 2 meters (6 feet 6 inches) meaning that ships can still pass along if loads are kept light.

The record low measurement highlights an extreme lack of water amid a monthslong drought across much of Europe. However, relief may be on the way with reduced temperatures and rainfall forecast for later in the week. 

rc/tj (dpa, AP, AFP, Reuters)

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