Germany and the Netherlands are grappling with exceptionally low river levels after weeks of hot, dry weather. For recyclers, the consequences are already becoming visible as barge transport slows, costs rise and supply chains are reconfigured.
At the HKS Metals recycling yard in Nijmegen, plant manager Bart van der Linden says the situation remains manageable on the short term. ‘Scrap is a sector that goes up and down. Right now, transport is currently our biggest challenge,’ he says. ‘We should not underestimate what is happening.’
Across Germany, water levels on major rivers including the Rhine, Danube and Elbe have fallen sharply following prolonged drought and repeated heatwaves. Dutch authorities have also acknowledged growing water shortages after temperatures exceeded 40°C in parts of the country. They expect substantial rainfall will be needed before river levels recover.
On the Waal near Nijmegen, the water level has dropped to around 4.5 metres, close to historic lows. Every 10-centimetre fall forces inland vessels to reduce their cargo by roughly 100 tonnes.
Finding new routes
The changing conditions are clearly visible along the river. From Nijmegen’s Waal Bridge, houseboats now sit almost in the mud. Only a shallow strip of water separates them from the riverbank. Meanwhile, cargo barges navigate narrow deep-water channels, making sharp, seemingly unexpected turns to avoid running aground. Spectators regularly stop to watch vessels squeeze safely past one another.
For HKS Metals, those conditions require daily adjustments. The company processes around one million tonnes of ferrous and non-ferrous scrap annually across its Dutch operations, with Nijmegen serving as one of its key facilities.
Van der Linden says the Twente Canal has now closed to shipping for the first time since ever. ‘The government does not make that decision lightly. It shows how serious the situation has become.’
As a result, HKS’s Hengelo facility has switched from barge transport to road haulage. However, summer traditionally brings fewer available trucks, while many companies suddenly require extra road transport.
Elsewhere, HKS has rerouted shipments via the River Maas instead of the Waal. Although the journey is longer, it remains notably cheaper than transporting scrap entirely by road. ‘We’re working away at this puzzle the best we can, without having to incur extra costs.’
Storage buys valuable time
HKS has not yet experienced production disruptions. The company still has sufficient feedstock to process and enough storage capacity for finished products awaiting shipment. ‘Obviously, we cannot store everything indefinitely,’ Van der Linden remarks. ‘For now, we are using our storage capacity as strategically as possible.’
The disruption has also reshaped export flows. ‘Normally, German customers account for around 20% to 25% of shipments from our Nijmegen facility. With some destinations now inaccessible by water, material is being redirected to existing customers elsewhere, including Spain, via the port of Moerdijk.’
Van der Linden is relieved other have customers have stepped in to take on the material typically bound for Germany. ‘So far, we’ve succeeded in finding a home for our recycled products every time, thanks to a dedicated sales and logistics team. In that respect, we’re far from sounding the alarm.’
In Germany, record low water levels on vital corridors like the Rhine River have severely restricted cargo vessel capacities by up to 75%. Many industries are thus facing big increases in freight rates – up to EUR 200 per tonne.
Keep calm and carry on
Meanwhile, HKS continues to strengthen fire prevention measures as drought increases the risk of yard fires. Scrap is stored further apart and for shorter periods. Thermal imaging cameras continuously monitor stockpiles for hotspots, allowing staff to intervene before a small incident develops into a major fire. ‘This innovation is nothing new for us. We invested in this technology many years ago,’ Van der Linden remarks.
For now, he remains pragmatic. ‘The yards are certainly not coming to a standstill. The question is simply: how long this heat will continue? How long until we feel the consequences of this heat?’
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