Closures to barge traffic on the Rhine at Basel in Switzerland and Karlsruhe in Germany Tuesday due to high water levels are expected to restrict movements of distillates inland by barge from the Amsterdam-Rotterdam-Antwerp hub in the coming days, sources said.
Water levels in Basel and Karlsruhe are 8.59 and 8.34 meters, respectively, according to Germany's Federal Administration Shipping and Waterways (WSV), which is well above the maximums of 8.20 and 7.50 meters at which barges are allowed to proceed.
The closures, which are currently limited to Southwest Germany, are likely to affect waterways further downstream. According to WSV forecasts, water levels exceeding the permitted maximums for navigation will move further north along the Rhine to near Cologne in the coming days.
The closures, restricting the movement of distillates inland, are likely to affect the ARA diesel and gasoil barge markets in the coming days. However, so far the impact on the barge market has been muted, according to a broker.
"It will get to the Western part [of Germany] and affect ARA I'm sure; it's not a question of if it will happen, but when it will happen, which could be tomorrow [Wednesday], or in two, three, four days, but it will happen," a distillates trader said. "It's going to get more restrictive," the trader added.
The current round of Rhine closures are the second in the last three weeks, after it was closed to barges at the beginning of January also due to high water levels.
