Low water levels on the Rhine have prompted HKG Shipping to call for a long-term fleet renewal programme for European inland waterway shipping. The company proposes mobilising investment in up to 1000 modern, energy-efficient vessels optimised for shallow-water operations by 2035.
The plan should also strengthen European shipbuilding capacities and HGK sees a leading role for the German government. Government involvement is to trigger private investments in the fleet renewal programme with a reliable long-term funding framework.
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Low water levels
The Middle Rhine is currently illustrating the enormity of the challenge. Only 16 centimetres were measured at the Kaub water measurement point on 11 August. The forecasts suggest that the situation will only deteriorate further and water levels will reach single-digit figures.
Low water levels are massively reducing the possible loads and therefore transport capacities on one of the most important European transport routes. Vessels that are optimised to operate in shallow waters make the crucial difference here.
In-house designed vessels as an example
The nine vessels, which are optimised to operate in shallow waters and have been developed with customers at HGK’s in-house Shipping Design Centre since 2018, serve as the significant reference points for further projects.
Steffen Bauer, the CEO of the HGK Group: ‘We’re seeing right now what a modern fleet can achieve: our “Synthese 18” is still transporting a load weighing 485 tonnes, even at the current extreme conditions at Kaub water measurement point. Let’s just imagine that we didn’t have this kind of capability, not just on individual vessels, but in relevant parts of our European fleet. That’s exactly what’s at stake with our demand for as many as 1000 modern vessels: keeping industrial supply chains moving for longer, even if water levels are extremely low.’
Low water levels inhibit economic growth
The current low water levels in the river Rhine in 2026 are certainly inhibiting German economic growth to a tangible degree. The present scale of the estimates is roughly a fall in GDP growth of 0.3 and 0.4 percentage points if the extreme low-water levels persist. The Kiel Institute for the World Economy estimates that the possible economic damage from the low water levels in the 3rd quarter will be as high as EUR 2 billion.
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An outdated fleet encounters a low construction rate
There is also a need to act in terms of structure. According to numbers published by the Central Commission for the Navigation of the Rhine (CCNR), the fleet conveying dry and liquid goods for the countries bordering the river Rhine involves approximately 7800 vessels. About eighty per cent of the dry goods fleet was constructed in the twentieth century. In addition, only thirteen new dry goods vessels and 38 new tankers came on to the market in 2024.
The small and medium-sized structure of the sector is an additional factor. A significant pro-portion of the fleet is operated by small and medium-sized companies as well as self-employed vessel owners and operators alongside larger shipping companies. The high investment sums and long amortisation periods for new modern vessels represent a significant hurdle, particularly for these companies.
Enable SMEs to invest in new ships
‘We cannot prevent low water levels,’ adds Bauer. ‘But we can build vessels that are still capable of operating for longer in difficult conditions. If we want to modernise the fleet, we must also enable small and medium-sized companies and self-employed vessel owners and operators to invest in the next generation of vessels.’
HGK Shipping says the future fleet must be resilient, efficient and ready for climate-friendly fuels and energy sources. Innovative vessel designs could also open new markets, including recycling, alternative energy, project and heavy-lift cargo, and high-value industrial goods, helping shift more transport to inland waterways.
Also read: HGK develops inland tanker for shipping ammonia and LCO2
1000 vessels by 2035
HGK is therefore suggesting a long-term “Fleet Renewal Programme for Commercial Inland Waterway Shipping 2035”. The goal should be to mobilise investments in as many as 1000 modern, commercial inland waterway vessels in Europe by 2035. With an average investment of EUR 12.5 million per vessel, this represents potential investment of up to EUR 12.5 billion. The programme would also support European shipbuilding capacity and technical expertise.
HGK says a reliable long-term funding framework is needed, particularly to help smaller companies and independent vessel owners invest in new vessels. It is calling for funding rates of up to 40 per cent to be considered.
The company also stresses that fleet renewal must go hand in hand with investment in inland waterways. Improving navigability and addressing infrastructure bottlenecks remain essential to ensuring resilient supply chains, particularly along the Rhine.
Picture: Modern vessels, which are optimised to operate in shallow waters, such as HGK Shipping’s “Synthese 18” continue to transport goods even under the current extreme conditions (photo by HGK Shipping).
