Swiss Pray for Rhine Rain as Fuel Stays Stuck in Netherlands
- Tax increase on heating oil could increase demand for imports
- Barge rates soar as falling water level limits capacity
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The Swiss are praying for rain on the Rhine River before winter as low water levels restrict barges transporting supplies of heating oil to the land-locked European country. A tax rise on the fuel that takes effect next year makes the need even more acute.
Water levels have slumped to the lowest in a decade, leaving fuel supplies stuck in the Netherlands and Belgium, where stockpiles are already at a seasonal record high because of a global glut. Vessels must sail with smaller-than-normal cargoes to avoid getting held up. Jaegers Shipping in Rotterdam, which operates 115 barges in that area, has told customers it can’t deliver some contracted volumes because of the Rhine levels.