Traders that usually load at Rhine or Main terminals are increasingly sourcing fuels from the Miro refinery in southwest Germany because of tightening supply conditions.
Low Rhine water levels have cut inland shipping capacity and lifted price levels in western Germany. The river's level at Kaub restricted vessels on routes from the Amsterdam-Rotterdam-Antwerp (ARA) hub to the Main and Upper Rhine to under 20pc of normal cargo capacity in the week to 17 July. At the same time, shipowners report stronger demand for barge space, as more vessels are needed to move the same volumes. Freight rates for destinations along the Main and Upper Rhine have risen sharply as a result.
Restricted resupply options and rising transport costs have pushed wholesale prices in the Rhine-Main region disproportionately higher than in other German regions. Traders report tighter product availability, especially for gasoline. The 310,000 b/d Miro refinery in Karlsruhe continues to run at high rates while local demand remains weak. Suppliers there have raised prices far less than at barge-supplied terminals.
Some Rhine-Main traders are accepting longer hauls from Karlsruhe, as procurement there remains competitive despite higher logistics costs.
Heating oil demand remains weak. Diesel demand is supported by seasonal consumption from agriculture and construction, but traders said many end users are deferring purchases where possible. Prices rose sharply early in the week on higher Ice gasoil futures. Futures climbed by nearly $90/t on 14 July after the US government announced a resumption of its blockade policy towards Iran in the strait of Hormuz. Heating oil and diesel prices in Germany rose by up to €11.40/100l compared with the previous day.
A fire broke out last week at BP's 251,000 b/d Gelsenkirchen refinery, shutting a diesel desulphurisation unit. BP said the rest of the plant was unaffected. Local traders said diesel and gasoline loadings there had already been halted since 13 July for pipeline maintenance, so the unit outage initially had no additional market effect.

