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Freight rates have soared by 2-3 times! The Rhine River is nearly shut down, bringing a series of tests to the European petrochemical market. 2026-09-28 09:43:48 Source:ChemNet 中文 As the persistent drought in Europe continues to worsen, water levels on the Rhine River, Europe's core chemical waterway, have repeatedly hit record lows, with inland shipping capacity nearly halved. As a result, logistics, raw material supply and plant production in Europe's petrochemical industry are under overall pressure, with multiple industrial chains including olefins, aromatics, methanol and additives facing issues such as supply contraction, soaring freight rates and frequent force majeure incidents at production facilities. Industry institutions warned that if the extreme low-water weather persists, European chemical delivery costs and regional supply and demand patterns will further deteriorate in the fourth quarter, and supply chains may face chain disturbances. The Rhine is the "golden waterway" for inland petrochemical trade in Europe, connecting the core coastal port areas of Amsterdam, Rotterdam and Antwerp (ARA) with world-class chemical industrial clusters such as Ludwigshafen, Leverkusen, Cologne and Wesseling in Germany, and undertaking most of Europe's inland transportation tasks for petrochemical raw materials and finished products. Monitoring data from the German Waterway Management Authority (WSV) shows that the water level at the Kaub gauge, a key shipping choke point on the Rhine, has continued to plummet, reaching 11 cm on September 23 and dropping further to 5 cm in the early morning of September 25. Institutions predict that the water level at this point will fall to only 1 cm on September 29 and remain at an extremely low level for at least three days, with navigation conditions reaching the worst level of the year. The sharp drop in navigable water levels has completely overturned the original inland transportation system. Under normal operating conditions, standard Rhine barges can carry 2,000 to 5,000 tons of cargo; industry standards show that when the river depth is less than 75 cm, barge cargo capacity must be reduced by up to 75%. Under the current extreme water level conditions, the actual loading capacity of market barges is strictly controlled in the range of 450 to 700 tons, a reduction of more than 60% compared to the conventional 2,000-ton capacity. The sudden drop in inland shipping capacity has forced chemical enterprises to largely switch to rail and road alternative transportation, directly pushing up overall logistics costs. Currently, regional freight rates have climbed to 2.5 to 3 times the normal level. To make matters worse, the core freight railway in the middle section of the right bank of the Rhine in Germany is undergoing annual maintenance, with the closure period covering July 10 to December 12. Road alternative capacity is already tight and cannot meet the massive freight demand transferred from river transportation, laying hidden dangers for the continued stability of the supply chain. This extreme low water on the Rhine has created dual impacts on Europe's petrochemical industry: logistics congestion and production restrictions. In addition to the obstruction of raw material and finished product transportation, insufficient river water volume and high water temperature have limited the operation of circulating cooling systems in multiple petrochemical plants along the river, forcing the production load of the plants to be reduced. Since July this year, logistics and production pressures have gradually translated into multiple force majeure announcements from enterprises, and the production and operation of leading European chemical enterprises are under overall pressure. On July 16, LyondellBasell declared force majeure on its 170,000-ton-per-year butadiene extraction plant in Wesseling due to blocked raw material transportation to its upstream cracking unit; in August, Covestro issued force majeure for polyether polyol products at its Dormagen plant due to Rhine logistics disruptions and interrupted raw material supply; BASF also initiated force majeure mechanisms for some regional surfactant products in Europe due to difficulties in obtaining raw materials and blocked logistics channels. Affected by the transmission of supply chain disturbances, significant changes have occurred in the market patterns of various European petrochemical sub-sectors, with prices, trade flows and supply and demand structures adjusting simultaneously. Among the olefin sectors, the butadiene market has been the most significantly impacted. The traditional river transportation trade model has been completely blocked, regional trade flows have been fully restructured, and enterprises have turned to rail transportation for restocking. Central European manufacturers with land logistics advantages have seen a significant increase in order demand. According to S&P Global Platts data, the average FOB Rotterdam butadiene price in September reached 1,184.41 US dollars per ton, an increase of nearly 158 US dollars per ton compared to the average price of 1,026.50 US dollars per ton in August, with a significant monthly increase. Meanwhile, the propylene market highly relies on cross-regional transportation via the Rhine. Poor transportation of naphtha and liquefied petroleum gas in summer has led to low raw material inventories in cracking units, and the output of propylene and its downstream derivatives has continued to be limited. In comparison, European ethylene relies on a mature pipeline transportation system and has relatively low dependence on river transportation, so it has been relatively less impacted by this low-water event. The aromatics industrial chain is under pressure on both supply and demand sides simultaneously. The benzene market has seen continued supply contraction and downstream purchasing受阻 due to multiple factors including difficulties in barge loading and unloading, blocked raw material transportation and limited cooling conditions for production facilities, leading to a continuous tightening of supply and demand fundamentals. Data shows that the average CIF benzene price in the ARA region rose to 1,264.29 US dollars per ton in September, a significant increase from 1,103.39 US dollars per ton in August. Among sub-categories, styrene downstream customers are widely distributed and have sufficient alternative space for land logistics, with relatively stronger risk resistance; while phenol and acetone raw material transportation highly relies on the Rhine. Currently, there is a shortage of raw materials and insufficient output in the German region, making it a price highland in the European market. The methanol market is also trapped in logistics congestion. Limited barge loading capacity has led to a sharp decline in port throughput, and the utilization rate of core storage tanks in the ARA region has surged to over 90%, with prominent problems of storage congestion and difficulty in unloading. Suppliers generally urgently need incremental spot storage tank resources. Even some enterprises that do not need to rely on river transportation for raw material procurement have been indirectly affected by concentrated congestion in regional land freight. Market participants admitted that the current facilities are operating at low loads and have not fully shut down, mainly relying on the constraints of plant start-up and shutdown costs and Germany's natural gas subsidy policies, and the pressure on the production side continues. The product oil and naphtha markets show a differentiated pattern. In the week ending September 24, gasoline inventories at the ARA hub fell by 3.42% month-on-month to 1.02 million tons. Although monthly inventories have recovered, they are still at a low level in the same period over the years. Coupled with tight supply of blending components, gasoline crack spreads have continued to strengthen, supporting the overall prosperity of the oil product market. In the same period, naphtha inventories in the ARA region rose by 7.09% week-on-week to 302,000 tons, but dropped by 41.25% compared to 532,000 tons in the same period of 2025. Affected by the paralysis of Rhine transportation, a large amount of imported naphtha has accumulated in coastal ports and cannot be transported to inland German cracking units, leading to prominent regional supply and demand mismatch issues. Regarding the future market trend, industry analysts pointed out that European chemical enterprises have experienced two Rhine low-water crises in 2018 and 2022, and have gradually established emergency plans and diversified transportation systems, with improved risk resistance. However, rail and road transportation capacities have rigid upper limits and cannot fully replace inland shipping in the long term. Currently, no large-scale supply interruption crisis has occurred in the industry, but if the extreme low-water weather persists for several weeks, Europe's petrochemical industry may face domino-style risk spread in the fourth quarter, with problems such as new force majeure incidents, tightened regional supply and a significant increase in terminal delivery costs will emerge concentratedly. Currently, enterprises across the entire industrial chain are closely tracking changes in Rhine hydrology and logistics recovery, and are stocking up in advance and adjusting production and sales rhythms to hedge against potential risks. [Copyright Notice] In the spirit of openness and inclusiveness of the Internet, ChemNet welcomes all media and institutions to reprint and quote its original content. If reprinted, please mark the source ChemNet. If you find any copyright issues with articles on this website, please contact Chemnet at [email protected].

Covestro and puren introduce new steps to improve purenit(R) footprint. September 25, 2026 Post Views: 12,568 puren and Covestro continue to jointly advance the functional material purenit(R). On the occasion of the inauguration of a new production line at the Obermarchtal site, puren has now certified its entire purenit(R) production to the ISCC PLUS standard. This certification lays the groundwork for puren to use Desmodur(R) CQ MS from Covestro as a binder, forming the basis for the nhttps://iscc-system.org/ext step in improving the environmental footprint of purenit(R). At the inauguration event, puren announced a first product built on this basis, with market launch planned for 2027. "With ISCC PLUS certification across our entire purenit(R) production we have the basis to use Desmodur(R) CQ MS from Covestro as a binder with bio-circular[1] attributed raw materials." says Dr. Andreas Huther, Managing Director of puren gmbh. "For our customers, this means the same material, the same performance and less CO[2] emissions and thus a material that takes a further step forward towards more sustainability and circularity. Sustainability therefore becomes a key performance indicator." Desmodur(R) CQ MS is based on climate-neutral[2] MDI made from bio-circular[1] feedstocks and certified through the mass balance approach," says Hermann Dörholt, Head of the Performance Materials business entity at Covestro. "This gives puren a raw material that delivers a lower carbon footprint while keeping processing unchanged. This kind of collaboration across the value chain is exactly what turns a single innovation into a measurable contribution for the whole industry and its customers." A material made from residues purenit(R) is a highly compressed functional material based on rigid polyurethane foam (PUR/PIR) with a density of around 550 kg/m[3]. Despite its low weight, it is pressure-resistant, moisture-resistant and dimensionally stable, provides reliable insulation, and can be sawed, milled, drilled and glued with standard woodworking machinery. These properties make it a core material for windows, doors, facades and base areas in construction, for bathrooms, wellness areas and outdoor kitchens, and for interior fit-out in motorhomes, commercial vehicles and ships. purenit(R) is produced using an adhesive-press process in which polyurethane residual materials are processed into homogeneous boards. This upcycling approach, turning a byproduct of PU production into a standalone, high-quality material, is unique in the insulation industry in this consistency. ISCC PLUS certification for more sustainability The use of Desmodur(R) CQ MS relies on the mass balance approach: bio-circular[1] feedstocks are physically blended in at an earlier stage of production and then mathematically allocated to the final product. ISCC PLUS independently verifies this allocation across the entire supply chain. Only full certification of purenit(R) production to this standard allows puren to correctly represent the bio-circular[1] raw material and the associated improvement in sustainability. Collaboration across the value chain Covestro supplies Desmodur(R) CQ MS, a raw material with a reduced carbon footprint, and puren processes it into a material that itself is built on the recovery of PU residual materials. The result is a product that benefits from circular thinking at two points in the value chain: the raw material and the material concept itself. For the polyurethane industry as a whole, this example shows that circular economy is already reflected today in certified, market-ready products. The new purenit(R) product using Desmodur(R) CQ MS as a binder was announced at the inauguration event. Market launch is planned for 2027