The riverbed of the Danube is exposed Tuesday as a prolonged heat wave grips the region. [Xinhua]
The riverbed of the Danube is exposed Tuesday as a prolonged heat wave grips the region. [Xinhua]

A record heat wave and drought sweeping Europe are shaking the continent's industrial output, logistics networks and energy supply chains. The Rhine River, Europe's most vital commercial waterway, has fallen to its lowest level in 150 years, while Romania has resorted to blasting its riverbed with explosives to secure cooling water for its only operating nuclear power plant.

According to The New York Times, CNBC and other outlets, Europe this summer has been hit by a combination of record heat, reduced rainfall and diminished Alpine snowpack, causing water levels in major rivers to drop sharply. Climate change is prolonging the heat and drought, spreading economic shocks across the continent.

The Romanian government recently shut down the Cernavoda nuclear power plant — the country's sole operating nuclear facility, which draws cooling water from the Danube — for the first time in history. It then deployed the navy to carry out underwater blasting of the riverbed, detonating rock near the village of Izvoarele to channel more water toward the plant's cooling systems.

The crisis along the Danube extends beyond Romania. The Paks nuclear power plant in Hungary, which supplies about 40 percent of the country's electricity, faces growing concerns over insufficient cooling water, while Serbia has cut hydropower generation. Governments across the region are urging households and businesses to reduce electricity consumption.

The Rhine is in equally dire straits. Rising in the Swiss Alps and flowing through six countries — including Germany, France and the Netherlands — before emptying into the North Sea, the Rhine is Europe's largest industrial and commercial waterway. It carries about 300 million tons of cargo annually, linking the port of Rotterdam with Germany's major industrial centers. Leading German manufacturers including BASF, Mercedes-Benz, Bayer and ThyssenKrupp have built their production bases along the river.

The water level at Kaub — a critical chokepoint for vessels heading to southern Germany and Switzerland — fell to 24 centimeters on Tuesday and Wednesday, the lowest since official measurements began in 1880. Levels are expected to drop further later this week.

The Rhine River runs low Thursday as an extreme heat wave drives drought conditions across the region. [EPA]
The Rhine River runs low Thursday as an extreme heat wave drives drought conditions across the region. [EPA]

The Rhine's standard navigable water level is 78 centimeters. Vessels can still operate below that threshold, but must carry far lighter loads than usual, sharply reducing transport efficiency while freight rates and low-water surcharges surge. Some cargo ships are sailing at less than one-third of their normal capacity, and shippers are diverting goods to rail and road transport.

Carsten Brzeski, head of global macro research at ING, said the Rhine is "one of the most important arteries of the German economy," adding that any disruption to the waterway "inevitably hits supply chains and manufacturing across the board."

Liz Saccoccia, water security director at the World Resources Institute, said the Rhine and the Danube "are critical foundations underpinning trade, industry and energy production," and that when water levels fall, "the impact spreads well beyond the waterways and into the broader economy."

She said nuclear plants in Hungary, Romania and France had reduced output due to cooling water shortages, and that Serbia's hydropower generation was also disrupted. "The risk of power outages is growing, and the cost of electricity imports is rising," she said. She added that delays in agricultural shipments and disruptions to river cruise operations on the Danube were sending cascading shocks through trade, supply chains and regional economies.

The economic damage is becoming real. According to the European Environment Agency, about 30 percent of southern Europe's population lives in areas of chronic water stress, where demand consistently outpaces supply.

Stefan Kooths, a professor at the Kiel Institute for the World Economy in Germany, projected that low Rhine water levels could shave up to 0.2 percentage points off Germany's GDP in the third quarter.

He said water levels were unlikely to recover quickly, meaning reduced transport capacity would persist for at least another month. Third-quarter economic losses could reach 1 billion to 2 billion euros ($2.31 billion), he added.


mokiya@heraldcorp.com