Germany's low rivers threaten construction supplies

Record-low water levels on the Rhine and other German rivers are increasingly putting pressure on the construction industry, as ships can carry less cargo, delaying deliveries and pushing up transport and material costs.

"Transport by water is becoming increasingly difficult," Thomas Reimann, president of an association representing construction contractors in the German state of Hesse, told dpa. Supplies of sand and gravel, which are often shipped in large quantities to concrete plants, are becoming scarcer and more expensive, he said.

Low water levels were now triggering a third wave of price increases within a few years, following the energy crisis linked to the war in Ukraine and the Iran conflict, he said, adding that many price rises tended to become permanent.

The German Construction Industry Federation (HDB) also warned that suppliers had already announced potential shortages of some building materials if the low water levels persist, which is currently expected.

Reduced shipping capacity is affecting materials including bitumen, aggregate and natural stone, as well as fuels and mineral construction waste.

Some shipments may have to be shifted to rail or road, while in extreme cases additional ships may be needed, HDB chief executive Tim-Oliver Müller said, although such alternatives would be more expensive and only possible to a limited extent.

Müller said a widespread halt to construction was unlikely, but the longer the low water levels persisted, the greater the risk of shortages, higher logistics costs and delays.