'Exceptional' summer heatwaves in Europe hurting economy

Europe's economy is bracing for significant losses as "exceptional" summer heatwaves push critical rivers to breaking point. Waterways like the Rhine, Danube, and Po have fallen to record lows, hampering vital transportation and industrial activities.

“

But then if it happens, it has huge consequences because everybody's used to it. There is no real backup.

The Rhine gauge in Cologne recently hit its lowest point since 1816, with water levels at the Kaub passage dropping to a mere 6 centimeters, far below the previous 2018 record of 25 centimeters. These rivers are essential arteries for inland navigation, carrying bulk goods such as oil, chemicals, coal, and grain.

“

Instead of one barge, you may need 200 trucks.

Logistics experts warn that the disruption has huge consequences because there is no readily available backup. When the Rhine became too shallow for barges, Germany resorted to easing Sunday driving bans for trucks, a far more costly alternative. Professor Rommert Dekker of Erasmus University noted that replacing one barge might require up to 200 trucks, leading to reduced production due to supply chain issues.

“

The smaller channels are already closed for shipping, simply because there's too little water … they've become unnavigable.

Economists estimate the total cost to the EU economy could reach €180 billion, or about 1% of its GDP. Triodos Bank projects France could lose 1.4 percentage points of growth, potentially pushing its economy into contraction. Italy, Spain, and the Netherlands are also expected to face significant economic impacts. Beyond freight, the low water levels affect drinking water supplies, power plant cooling, hydroelectric energy generation, and tourism, further straining the continent's economic resilience.

“

That's caused disruption to supply chains for so many companies.