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Trucking growth underperforms expectations as driver shortages offset low water levels in the Rhine

Executive summary: Trucking traffic growth in August was lower than predicted, despite significant low water levels in the Rhine river which usually incentivizes road transport. The inability to shift cargo to roads due to driver shortages threatens supply chain stability and could maintain upward pressure on goods prices.

Who is involved: Logistics companies, truck drivers, German economists, and the German transport sector.

Likely next: Continued pressure on logistics costs and potential labor market interventions to address the driver shortage.

Record low water levels on the Rhine and Elbe rivers this summer were expected to trigger a pronounced shift of freight from inland barges to trucks, yet August traffic data show trucking growth falling short of forecasts. Economists point to a chronic shortage of qualified drivers as the binding constraint, meaning that available road capacity cannot be fully utilized even when waterways become impassable. The bottleneck has moved from infrastructure to human capital, revealing a structural vulnerability in Germany's logistics network. The low-water crisis extends beyond the Rhine: shipping on the Elbe may remain halted until September, while Hungary's Paks nuclear plant narrowly avoided shutdown due to insufficient cooling water. Simultaneously, consumer prices for fresh produce such as salads and carrots have already risen, reflecting disrupted supply chains. These parallel pressures underscore that the transport system's ability to adapt to climate-driven disruptions is limited by a labor market that has not kept pace with demand, exacerbated by an aging workforce and stringent driving-time regulations. A crisis meeting convened by State Secretary Steffen Bilger in Bonn signals growing political recognition of the issue. Until driver recruitment, retention, or automation measures yield tangible results, the economy will remain exposed to compounding shocks — low water, high energy costs, and food inflation — with limited short-term relief on the horizon.

What's next — scenarios

Base Case: Labor bottleneck persists (60%)

Logistics costs remain high and supply chains remain sensitive to river levels due to lack of road capacity.

Upside: Rapid labor market correction (15%)

Trucking volumes rise to meet demand, relieving pressure from river transport disruptions.

Downside: Dual crisis (Water + Labor) (25%)

Severe logistics paralysis causing spikes in inflation for consumer goods.

What to watch

Timeline

Analysis — what this means

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Regulatory implications

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Key entities

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