Switzerland faces cost hikes with Rhine dry (cross-border guide)

Context

The Rhine suffers from persistent drought. In several stretches the water level is now so low that navigation is severely limited. Commercial shipping will no longer be able to transport goods in the region with such low water levels.

The situation is particularly critical in the Basel area, where the Rhine forms the border with Germany. The water level has dropped to less than 1 meter, making it difficult for ships to transit. “It's an unprecedented situation,” declares the director of the Rhine Navigation Bureau, “I don't remember ever seeing such a low level.”

Drought not only limits navigation, but also the water supply for cities and industries in the area. The city of Basel, for example, depends on the Rhine for about 70% of its water supply. “If the Rhine doesn't fill up, we risk not having enough water for the city,” warns the mayor of Basel.

Switzerland has already been hit by a number of drought-related problems in recent years. In 2019, the government had to declare a state of emergency due to the drought, which hit the Jura area. The situation was further aggravated by the lack of summer rains.

Drought is not only a local problem, but also a national one. Switzerland is a country that depends heavily on the waters of the Rhine for its water supply. "If the Rhine dries up, we risk not having

Operational details

The goods must be transferred by road or rail in order to continue to Switzerland. Basic groceries could become more expensive. The situation is particularly critical for the canton of Basel-Country, which is heavily dependent on freight traffic across the Rhine.

According to estimates, the reduction in freight traffic could cause a loss of more than 10 million Swiss francs for the canton's economy. The cost of transporting goods could increase by 20-30% due to the need to use alternative means. This could have a significant impact on small and medium-sized enterprises that depend on transporting goods across the Rhine.

The Swiss Confederation announced that it expects to spend around 50 million Swiss francs to cover the costs of transporting goods through Switzerland. This amount is up from CHF 30 million in 2022.

To mitigate the impact of the reduction in freight traffic, the Swiss government has decided to increase aid to companies that have been most affected by the situation. The canton of Basel-Country received 2 million Swiss francs to cover the freight costs.

The situation is similar to that of 2022, when the Rhine was closed due to flooding. In that case, the Swiss government had decided to increase aid to the companies that had been most affected by the situation.

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Key points

The goods must be transferred by road or rail in order to continue to Switzerland. Basic groceries could become more expensive. For additional information, please refer to the source.

The Rhine is one of the main waterways connecting Germany to Switzerland, and its dryness could have serious consequences for the Swiss economy. In particular, the lack of river traffic could lead to an increase in transport costs and food prices.

According to data from Switzerland, 70% of goods transport to Switzerland takes place by river. With the dry Rhine, these transports will have to be transhipped by road or rail, which could increase transport costs by around 20%. 📊

Basic food items, such as bread, milk, and vegetables, could become more expensive due to this increase in transportation costs. For example, the price of bread could increase by about 10% due to the lack of river traffic. ⚠️

The canton of Bern, which is located in the north of Switzerland, is one of the main importers of food from Germany. According to data from the canton, 60% of imported foodstuffs arrive by river. With the dry Rhine, these amounts could increase by about 15%.

The legislation governing the transport of goods by river in Switzerland is the Federal Act of 25 May 1973 on inland waterway transport, which provides for the possibility of transporting goods

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Source: tio.ch