German inland shipping group HGK is calling for a government-backed programme to mobilise up to €12.5bn ($14.4bn) in investment for 1,000 new shallow-water-capable vessels across Europe by 2035, according to Splash247. The push comes as exceptionally low water levels on the Rhine slash the amount of cargo vessels can carry, with the Kaub gauge on the Middle Rhine standing at just 16 cm on August 11.
The Cologne-based group has urged Berlin to take the lead in setting up a long-term funding framework to renew the inland fleet. HGK pointed to its shallow-water-optimised Synthese 18 as an example of the type of tonnage needed: the vessel was still able to carry 485 tonnes under extreme low-water conditions.
A €12.5bn funding call
HGK, described by Splash247 as a German inland shipping heavyweight, wants a government-supported scheme to stimulate construction of shallow-water ships that can maintain cargo capacities during drought periods. The proposed scale — 1,000 vessels by 2035 — would represent a significant acceleration in fleet renewal. HGK said the Rhine countries' dry and liquid cargo fleet numbers around 7,800 vessels, with about 80% of dry cargo tonnage built in the last century. The replacement rate is low: just 13 new dry cargo ships and 38 tankers entered the fleet in 2024.
| Metric | Figure |
|---|---|
| Proposed investment | €12.5bn ($14.4bn) |
| Target new vessels by 2035 | 1,000 |
| Kaub gauge reading (Aug 11) | 16 cm |
| Cargo carried by Synthese 18 | 485 tonnes |
| Rhine fleet size | ~7,800 vessels |
| Dry cargo tonnage built in last century | ~80% |
| New dry cargo ships entered 2024 | 13 |
| New tankers entered 2024 | 38 |
| Existing German green funding scheme | €125m |
| Proposed fleet renewal support | up to 40% |
Fleet renewal and small operators
HGK wants Germany to build on its existing €125m green inland shipping funding scheme, with support of up to 40% considered for fleet renewal, particularly for smaller operators facing high newbuild costs and lengthy payback periods. The company has developed nine shallow-water-optimised vessels with customers through its Shipping Design Centre since 2018. In total, HGK operates a fleet of around 300 inland vessels, including owner-operated tonnage, carrying dry cargoes, chemicals, liquefied gases and breakbulk.
HGK wants Germany to build on its existing €125m green inland shipping funding scheme, with support of up to 40% considered for fleet renewal.
What it means for shippers and operators
For freight forwarders, logistics managers and shippers relying on Rhine barge transport, the low-water crisis and the aging fleet create a double constraint. The Kaub gauge at 16 cm effectively cuts carrying capacity for conventional vessels, while the existing fleet's age raises the risk of breakdowns and maintenance delays. The proposed newbuild programme would add shallow-water-optimised tonnage that can still carry meaningful loads — such as the 485 tonnes achieved by Synthese 18 — when standard vessels must lighten their loads or halt.
The current pace of renewal, however, remains far below what would be needed to replace last-century tonnage. If Berlin acts on HGK's call and expands the funding framework, smaller operators could see newbuild support of up to 40%, which HGK argues is essential given the high upfront costs and long payback periods. For cargo owners, faster fleet renewal would mean more reliable inland waterway capacity and less exposure to weather-driven disruptions on the Rhine.
Watch list
- Further Kaub gauge readings and Rhine navigability conditions as low-water season continues.
- Berlin's response to HGK's proposal for a long-term fleet-renewal funding framework.
- Uptake of the existing €125m green inland shipping funding scheme and any expansion.
- Newbuild orders for shallow-water-optimised vessels and deliveries scheduled beyond 2026.
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