Europe's trade artery risks running dry in warning for the world

Telegraph

10-07-2025

The village of Kaub lies on Germany's Rhine river, about 40 miles west of Frankfurt. It's a sleepy little place, home to barely 800 souls. But on its riverbank sits a squat, cream-coloured tower on which billions of euros depend.
This tower, known as Pegel Kaub, looks like a cross between a lighthouse and a chateau turret. On its riverside facade is a large and incongruous digital display, which provides a real-time gauge of the Rhine's constantly varying water level.
For the 7,000 barges that traverse the river, carting 200m tonnes of goods and fuel a year between Germany's industrial heartlands and the North Sea – this critical number signals whether it's safe to sail with a full load.
If the level falls below about 80cm, waterway traffic starts grinding to a halt.
This matters. During a severe spell of low water in November 2018, German factories' output plunged 1.5pc and took a 0.4pc chunk out of German GDP, according to the Kiel Institute for the World Economy.
The country is at risk of a similar crunch today. Heatwaves and low rainfall, combined with a lack of snow melt on the Swiss alpine glaciers, have pushed water levels to unusual lows for this time of year.
The level at Kaub this week is just over 1m, but last week dipped as low as 96cm. There was a spell in April when it veered below the 80cm threshold.
The health of the Rhine matters beyond Germany's borders. German factories account for more than a quarter of Europe's industrial output and the Rhine is its artery – a ceaseless daily pulse of everything from oil and coal to chemicals, construction materials and car parts.
The river flows downstream from Switzerland through France, Germany and the Netherlands, linking the Continent's industrial hinterland with the mega ports of Rotterdam and Antwerp. The freight volume is so large that it can't be readily shifted to road or rail.