Persistently low water levels on Germany's major inland waterways are increasingly disrupting the transport of recycled steel scrap, prompting industry associations to warn of growing risks for the country's steel sector.
The German Steel Recycling Association (BDSV), the Federal Association for Secondary Raw Materials and Waste Management (bvse) and the Association of German Metal Traders and Recyclers (VDM) said the situation on the Rhine, Danube and Oder rivers is creating significant bottlenecks for scrap deliveries to steelworks. The issue is particularly relevant for Germany's steel industry, where scrap is a key raw material and demand is expected to increase further with the transition towards electric arc furnace (EAF) steelmaking.
Transport capacity sharply reduced
According to the associations, low water levels have forced inland vessels to operate with only one-third to one-half of their normal cargo capacity. On parts of the Oder River, inland shipping has virtually come to a standstill.
The reduced transport capacity has driven freight rates sharply higher. The associations report that shipping costs on some routes have already tripled or even quadrupled, while additional low-water surcharges, delays and logistical adjustments are adding further costs.
"If transport capacity on inland waterways falls to one-third within a short period, these volumes simply cannot be shifted to other modes of transport," said Guido Lipinski, Managing Director of BDSV.
Rail and road cannot absorb volumes
The industry groups argue that rail and road transport cannot replace inland shipping on a large scale. Rail freight is already constrained by limited capacity and wagon availability, while road transport cannot economically handle the large scrap volumes typically carried by barges.
"The suggestion that companies can simply switch to rail or trucks during periods of low water does not reflect operational reality," said Eric Rehbock, Managing Director of bvse.
The associations also warned that shifting freight to road transport would increase congestion and emissions, conflicting with Germany's transport and climate objectives.
Calls for infrastructure investment
BDSV, bvse and VDM are urging the German government to strengthen the resilience of inland waterway logistics. Their proposals include accelerating upgrades to federal waterways, developing a nationwide low-water strategy beyond the existing Rhine action plan, improving hydrological forecasting and coordination between logistics providers and industry, supporting low-water-capable inland vessels, and ensuring that additional transport costs are shared fairly across the value chain.
The associations stressed that the current situation should not be viewed as an isolated weather event but as another warning about the vulnerability of Germany's industrial infrastructure, particularly for steel recycling and raw material supply.
