emirates7 - Germany's chemical industry has warned that low water levels on the Rhine and other rivers could force companies to reduce production as transport costs rise and supply chains come under pressure.

According to the German Press Agency (dpa), the warning came ahead of a conference on low water levels due to be held in Bonn on Thursday.

The Kiel Institute for the World Economy estimates that low river levels could reduce Germany's economic output by between US$1.15 billion and US$2.3 billion in the third quarter and lower gross domestic product by 0.1 percent to 0.2 percent. Germany's economy grew by 0.2 percent in the second quarter.

The Rhine is one of Europe's most important waterways. Chemical companies, including BASF, Evonik and Covestro, use the river to transport products such as methanol, butane, propane and ammonia.

Around 20 million tonnes of chemical products were transported on Germany's inland waterways in 2024.

BASF normally transports about 40 percent of goods at its main Ludwigshafen site by ship but is now shifting part of its freight to trucks and rail.

However, major construction work on the railway line along the Rhine's eastern bank is restricting rail capacity between Cologne and the Rhine-Main region.