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Europe's inland transport: higher rates, longer journeys, and pressure on raw materials

Forecasts indicate water levels at the Rhine Kaub gauge will remain extremely low, between 21cm and 27cm through 8 August, this when the 'base' level is 40 cm. Adding to the challenges is major renovation work on the rail line between Troisdorf and Wiesbaden in Germany, which is reducing available capacity. The route is a busy freight corridor connecting inland regions with European seaports. Diversions linked to the works have restricted rail transport options. "The overlap of rail works and low water conditions means lost inland shipping capacity cannot be offset quickly through additional rail services," K+N noted. Intermodal operators are navigating the situation with multiple solutions, including operating additional barges, expanding direct trucking solutions, and increasing alternative rail and feeder connections, it explained. "However, alternative transport options remain constrained, especially with the shortage of truck drivers, which is limiting the ability of road transport to compensate for reduced capacity elsewhere, particularly in the south-west of Germany." Navigation difficulties on the Rhine are yet another reminder that supply chain risks have fundamentally increased, according to Rico Luman, senior sector economist for transport and logistics at Dutch bank ING. "The timing is particularly concerning," he said, adding that such shallow water this early in the season was a clear sign of mounting climate-related issues. Barges transporting raw materials and containers upstream into Germany are often restricted to a fraction of their normal loading capacity. In some cases, four barges are needed to transport the volume one would normally carry, explained Mr Luman. "The result is higher freight rates, longer journey times, and pressure on raw material supplies for manufacturing sites. Remarkably, these extreme low-water events have occurred more often in the past decade than in the preceding five decades." He concluded: "Building resilience, including considering higher buffer stocks where appropriate, is no longer a temporary adjustment but a structural necessity. "The lesson is becoming increasingly clear: [supply chain] resilience is no longer a luxury. It is a prerequisite for doing business in today's world."

Russian agency gears up for regular NSR voyages

Russian government body State Atomic Energy Corp Rosatom, which manages the Northern Sea Route (NSR) infrastructure and operations, is gearing up for regular shipping services through the Arctic. Director general Alexey Likhachev said on Friday it had issued permits to Chinese liner operator Sea Legend Shipping for eight China-Europe sailings using the Arctic route. Sea Legend ran a trial NSR voyage last year with the 4,890 teu Istanbul Bridge to carry cargos from Ningbo to Felixstowe. For the 2026 NSR navigational season, running until November, the line wants to ship more goods from China to Europe. Mr Likhachev said this year, Rosatom wanted to see weekly NSR sailings throughout the whole season in order to turn the NSR into an alternative to the Suez Canal. He said: "Unlike previous container shipments via the NSR, which were largely experimental or one-off in ⁠nature, the 2026 programme provides for a fully-fledged regular service with vessels sailing every week." Russia had long hoped to turn the route into a "second Suez Canal", but this vision was hampered by high transportation costs and the icy climate, he added. The US/Israel-Iran conflict and the Red Sea crisis had made the Arctic route more globally significant. Russia's NSR ambitions coincide with those of China and South Korea to exploit the route as a truncated pathway from Asia to Russia and Europe. While Chinese liner operator Yangpu Newnew Shipping was the most active user of the NSR last year, and is working with Rosatom to develop port infrastructure in the area, the South Korean government, through ferry operator Panstar Line, is preparing for a trial container shipping voyage through the Arctic on 22 August. In late July, the China Shipowners' Association announced that several dry bulk ship operators would transit the NSR between August and September, calling at Murmansk and Arkhangelsk in Russia. The association said the NSR was shorter than the usual Suez transit by 30% and avoided its security risks. Perhaps, in response to Russia's war on Ukraine, ships have been moving in convoys along the NSR, especially when Russia is shipping more crude oil and LNG to China amid the closure of the Strait of Hormuz. At the start of August, some nine tankers were waiting for icebreaker escort for the eastbound passage through the Taymyr Peninsula, according to news site The Barents Observe.

Jetstream delivers first Saab 340B(F) cargo aircraft to Alaska operator Ryan Air

Saltchuk Aviation-owned Ryan Air has taken delivery of its first Saab 340B(F) cargo aircraft from Jetstream Aviation Capital for use in its air cargo operations across western Alaska in the US. The aircraft, with serial number 340B-329, was delivered to Anchorage, Alaska-based Ryan Air on 4 August. The freighter will be used for the airline's scheduled and chartered cargo operations throughout western Alaska. "Jetstream is proud to announce the delivery of the first Saab 340B(F) cargo aircraft to Ryan Air," said Florida-based lessor Jetstream in a LinkedIn post yesterday. "This delivery represents more than the addition of an aircraft; it reflects a shared commitment to supporting the essential movement of cargo and supplies throughout Western Alaska. We're honored to play a role in Ryan Air's mission of serving more than 80 communities across the region."