The Strategist

German industrialists: Drought and low water levels threaten supply security

08/17/2022 - 10:42

Due to the shoaling of German rivers brought on by the drought, the Federal Association of German Industry (BDI) expressed concern about the logistics situation.

"The supply security of industry is threatened by the ongoing dry season and low water levels. Businesses are getting ready for the worst. The already challenging economic environment for businesses is getting worse," Deputy CEO of BDI Holger Lösch remarked in a statement.

He observed that the barges are currently operating with a light load. The coronavirus outbreak, heavy railroad traffic, and a lack of drivers, however, will make the summertime switch from waterways to rail and road challenging, Lösch noted.

The deputy general manager of BDI stated, "It's only a matter of time before the chemical or steel industries are shut down, mineral oils and construction materials are not provided, or huge and heavy shipments can no longer be made."

Additionally, he noted that this development might lead to logistical problems, production reductions and downtime, and the conversion of part-time workers to part-time employment.