Recently, due to the hot weather and precipitation in Europe, the water level of the Rhine has dropped to less than 100cm. Due to the low water level, the transportation of this European waterway main line has been greatly affected. According to market news, the current rate of the Rhine barge is 50% or less, due to the decline in the shipping rate, the cost of river transport has also risen.

BASF Germany issued a letter on August 6th that due to the drop in the water level of the Rhine and the high water temperature, it was not possible to obtain sufficient cooling water from the river. Some of the installations in Ludwigshad had to reduce the operating load. And if the current weather continues, cargo shipments will become a bigger problem, and BASF is currently preparing for other modes of transportation.

Because BASF and Covestro’s MDI and TDI devices in Europe are mainly concentrated in Germany, if the Rhine transportation is restricted and the cargo transportation is changed to land, the cost is likely to increase, resulting in a lack of smooth flow of TDI and MDI in the European market. Eliminate the possibility of reduced supply and higher prices.

BASF has the world’s largest chemical complex in Ludwigshafen, integrating production, energy, logistics and utilities, making it the largest integrated base for BASF. Built in 1865, Ludwigshafen has about 110 production facilities and 200 production workshops.

At Ludwigshafen, BASF has 380,000 tons/year TDI and 125,000 tons/year propylene oxide. The 80,000 tonne/year TDI unit will be discontinued after its 300,000 tonne/year facility is operating normally. At present, BASF’s 300,000 t/y TDI unit in Germany is in the commissioning phase. Although BASF did not specify which equipment to reduce the load, it does not rule out the possibility of TDI being affected. Although it is still in the off-season of TDI demand, with the arrival of September, the TDI market will gradually pick up. If the load of BASF’s German TDI device is still low before entering the peak season, the European market price may be at a higher level.

In addition, because the Rhine River has many countries, other factories besides BASF may also face transportation difficulties. Such as Covestro’s 300,000 tons/year TDI and 240,000 tons of polyether units in Germany, Germany’s Brunsbit 180,000 tons/year MDI and Germany’s Krefeld 200,000 tons/year MDI units are located in the Rhine. In the western part of the river, water transport is also likely to be affected in the future.