▲ The Rhine River in Europe, revealing its riverbed
Everyday economic activities in Europe are suffering from severe heatwaves and extreme drought.
Water levels in the continent's lifelines, the Danube and Rhine rivers, have dropped to the point where their riverbeds are exposed, spreading damage across agriculture, power generation, and logistics as a whole.
Concerns are growing that if the situation becomes prolonged, already suppressed economic growth will slow down even further due to the expansion of protectionism and geopolitical risks.
According to foreign media reports, including the BBC, on the 3rd local time, the water levels of the Rhine River measured in Cologne, western Germany, and Lobith, the Netherlands, hit record lows since observations began.
The Danube River, which flows from Germany to the Black Sea, has already exposed its riverbed to the extent that the wreckage of Nazi warships sunk during World War II and mammoth fossils are now visible.
The Po River, the longest river in Italy, is also recording record low water levels day after day.
The drying up of Europe's rivers is attributed to extreme drought accompanied by heatwaves.
As hot weather continues without rain, logistics are being paralyzed due to the risk of cargo ships running aground, crops are withering, and the tourism industry is facing the brink of collapse.
Disruptions in power supply have also begun in earnest in Serbia, Romania, and Hungary.
Hungary is successively suspending the operation of the Paks nuclear power plant, which accounts for 40 percent of the country's electricity production.
This is because the water level of the Danube River, from which the plant must draw cooling water, has dropped and failed to meet the required levels.
Hungary is narrowly extending the operation suspension period of the nuclear plant through voluntary electricity consumption cuts by businesses and citizens.
The current electricity production of the Paks nuclear plant remains at around 10 percent.
Romania dynamited the bedrock of the Danube River to secure cooling water for its nuclear power plant.
This was done to send more water to the waterway where the Cernavoda nuclear reactor, whose operation was partially halted due to the drought, is located.
Two Ford and Dacia automobile plants in Romania decided to halt production for more than two weeks to reduce electricity consumption.
Serbia reduced power generation at its coal-fired power plants as water shortages made it difficult for cooling systems to operate properly.
The narrowing waterways are also paralyzing logistics networks.
As of the 31st, the navigable water depth at Kaub, Germany, a representative bottleneck section of the Rhine River, the busiest inland waterway in Europe, dropped to 25cm, matching the record low set in 2018.
As water levels drop, cargo ships are only able to carry 20 to 30 percent of their usual load.
When payload capacities decrease, more vessels must be mobilized for cargo transport, which inevitably drives up freight rates.
Transportation costs have already surged threefold compared to a month ago, causing disruptions in supply chains.
German steelmaker ThyssenKrupp reduced pig iron production at its Duisburg steel mill as low water levels made it difficult to operate large barge ships.
The German Federal Waterways and Shipping Administration expects the navigable water depth at Kaub to drop below 20cm later this week, heightening concerns over economic damage caused by transport restrictions.
In Italy, concerns are rising that drinking water supplies could face disruptions as the water level of the Po River has fallen to its lowest level.
As the discharge at the mouth of the Po River decreases, seawater is flowing into the riverbed, causing ecosystem disturbances and raising concerns over agricultural water shortages.
The European Union (EU) stated that long-lasting dry weather is threatening crop yields across Europe.
The tourism industry has also taken a hit.
In Bulgaria, as the water level of the Danube River dropped last week, a cruise ship ran aground on a sandbar, forcing 186 passengers to evacuate to land.
Cruise operators are canceling operations on the Danube River and elsewhere.
Experts worry that if the damage from the drought spreads, it could also threaten economic growth rates.
Carsten Brzeski, head of macro research at Dutch bank ING, forecasted that if logistics disruptions caused by the drought are not resolved in a short time, Germany's economic growth rate could stall at 0.5 percent instead of the previously predicted 0.8 percent.
The Kiel Institute for the World Economy projected that the drought on the Rhine River, which serves as a logistics artery, could drag down Germany's gross domestic product (GDP) growth rate in the third quarter by 0.1 to 0.2 percentage points.
According to the Kiel Institute, Germany's economic growth rate dropped by nearly 0.4 percentage points due to extreme drought in 2018 as well.
(Photo: AP, Yonhap News)
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