HGK Shipping is calling for a long-term fleet renewal programme for commercial inland waterway shipping, as record-low water levels on the river Rhine expose the vulnerability of the region’s ageing fleet.
The company wants investment in up to 1,000 modern, energy-efficient vessels optimised for shallow-water operation across Europe by 2035, alongside efforts to strengthen European shipbuilding capacity.
HGK is calling on the German government to lead the process, arguing that a long-term funding framework is needed to unlock private investment in fleet renewal.
The Middle Rhine is currently illustrating the scale of the problem, with just 16 centimetres measured at the Kaub water measurement point on 11 August.
Forecasts suggest conditions will deteriorate further, with water levels expected to fall into single digits. Declining water levels are sharply reducing possible loads and transport capacity on one of Europe’s most important transport routes.
Steffen Bauer, CEO of the HGK Group, said: “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 1,000 modern vessels: keeping industrial supply chains moving for longer, even if water levels are extremely low.”
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The Kiel Institute for the World Economy estimates the current shallow water levels could reduce German economic growth by 0.3 to 0.4 percentage points, with potential economic damage in the third quarter reaching as much as €2 billion ($2.3 billion).
According to figures from the Central Commission for the Navigation of the Rhine (ZKR), the fleet conveying dry and liquid goods for countries bordering the Rhine comprises approximately 7,800 vessels, roughly 80 per cent of which were built in the 20th century. Only 13 new dry goods vessels and 38 new tankers entered the market in 2024.
Bauer said the sector’s fragmented structure adds to the challenge: “We cannot prevent low water levels. 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.”
Based on an average investment of €12.5 million ($14.4 million) per vessel, HGK’s proposed programme corresponds to a potential investment figure of up to €12.5 billion ($14.4 billion).
The company wants funding rates of up to 40 per cent examined under state aid rules, particularly to support smaller operators and self-employed vessel owners.
Bauer added: “The modernisation of the fleet is a European task – but Germany must take a lead in this process. We need a reliable investment framework from the German government up to 2035, which mobilises private capital and provides companies with planning certainty for building new vessels.”
For more information:
HGK Shipping – https://hgkshipping.de/en/home-en/
