Low water levels on the Rhine, Danube, and Oder are increasingly disrupting the supply of scrap to the German steel industry, according to a joint press release issued by the Circular Metal Association (CMA) and Federal Association of Secondary Raw Materials and Waste Management on July 28, 2026. The associations stated that cargo shipping has virtually come to a standstill on some sections of the Oder, while vessels operating on the Rhine and Danube are being forced to sail with significantly reduced loads, creating pressure on raw material supply chains and transport costs.
German industry groups said the transport of scrap has been particularly affected by the low-water situation. Depending on the type of vessel and route, inland waterway cargoes can currently carry only half to one-third of their usual capacity. The associations noted that freight rates on certain routes have already tripled or quadrupled, with additional pressure coming from low-water surcharges and extra costs related to shipping delays and rescheduling.
Commenting on the situation, CMA Managing Director Guido Lipinski stated: “If transport capacity on the waterways drops to one-third within a short period of time, these volumes cannot simply be shifted to other modes of transport.” Alternative transport options in fact offer only limited relief. Rail transport is already struggling with capacity and wagon shortages during normal operations, while truck transport cannot absorb the large tonnages involved, either economically or in terms of infrastructure.
“The demand to simply switch to rail or trucks during low water levels ignores operational realities,” Federal Association of Secondary Raw Materials and Waste Management CEO Eric Rehbock commented, adding that shifting large volumes from water to road transport will also have negative consequences for the environment, as well as contradict Germany's climate policies.
The associations stressed that steel and metal scrap are vital raw materials for the steel industry, and their importance will continue to increase as the transition to EAFs progresses. As a consequence, both associations called on policymakers to “safeguard the associated transport chains and ensure that recycling companies are not left to bear the additional costs indefinitely”. More specifically, their requests include:
• Accelerated rehabilitation of federal waterways, as well as optimization of unloading operations on the Middle Rhine and elimination of bottlenecks on the Danube;
• A more effective national strategy compared to the current “Low Water on the Rhine” action plan, which includes the Oder, Elbe, and other waterways;
• Reliable funding and stronger staff for the Waterways and Shipping Administration with faster permitting procedures;
• Better hydrological forecasts and earlier coordination among shippers, ports and railways led by the Federal Ministry of Transport;
• Targeted support for low-water-capable, low-emission inland waterway vessels;
• A fair distribution of additional costs along the value chain.
Concluding their assessment, the associations said that the current low water levels are “not an isolated weather event,” adding that climate-resilient upgrades to waterways should be regarded as part of raw materials, industrial and circular economy policy.
The associations underlined the strategic importance of inland waterways for maintaining reliable scrap supply to Germany's steel industry, as the issue has also recently forced some companies to reduce their production output due to the lack of raw material supply.
