Coal ran aground in Europe

Coal remains one of the main fuels for electricity generation, for example, in Germany. However, its delivery to power plants has plummeted. Abnormal heat has led to shallowing of rivers and carriers have reduced the volume of cargo they can carry.

"Coal barge operators are reducing traffic volumes by two-thirds due to falling water levels in the Rhine," Montel writes.

The depth of some sections of the Rhine has dropped to less than half a meter, although sufficient reserves should mitigate any short-term impact, market participants told the publication.

"Shallow water means that ship operators introduce surcharges to freight rates to compensate for the incomplete loading of vessels, which increases costs for cargo owners. This also means that cargo has to be distributed among several partially loaded vessels, which also increases costs," traders have already told Reuters.

According to them, the low water level makes it difficult to navigate the entire Rhine south of Duisburg and Cologne, including the narrow section of the Kaub.

"Vessels can often go to sea with only a 20 percent load, and cargo has to be distributed among several vessels. Currently, barges are capable of transporting only about 1,200 metric tons through Duisburg, and in Kaube — only 460 tons. The cost of transportation by tanker barges from The price of Rotterdam in Karlsruhe rose to 60-70 euros per ton from about 45 euros at the end of June," the agency writes, noting that the Rhine is an important shipping route for goods such as grain, minerals, ores, coal and petroleum products, including fuel oil.