Low Rhine strains Swiss diesel supply as importers turn to compulsory stocks

Extremely low Rhine water levels have tightened refined product supplies into Switzerland, forcing importers to increasingly rely on alternative transport routes and compulsory diesel stocks as barge movements remain heavily restricted, according to market participants.

Barge supplies to the landlocked country have fallen to paltry levels, with one Swiss diesel and gasoil distributor reporting that, while normally Rhine barges would account for 40% of their product supply, the share had fallen to between 3-4% under current conditions.

“There is no product coming in from ARA or German refineries and depots at Gelsenkirchen and Bottrop,” the source said, adding that barges were also having to limit loadings to 400-600 mt due to low water levels. A German source reported that even higher up the Rhine, barges were still limited to between 600 to 700 mt. Under normal conditions, barges carry around 2,500 mt.

Falling barge loads and limited journeys have forced freight rates to new highs, putting further strain on the limited supply coming in as buyers foot rocketing costs in the FOB traded market.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →