Shallow water after dry weather over the past few weeks is continuing to prevent cargo vessels from sailing fully loaded on the Rhine and Danube rivers in Germany, traders said on Tuesday. Loads having to be divided among several vessels instead of being carried by a single craft, increasing transport costs for cargo owners.

"If water levels do not rise by the end of the week, water may be so shallow that many larger barges will not be able to navigate on the central Rhine, even partly loaded," one German grain trader said. Mostly dry weather is forecast in river catchment areas in Germany and Switzerland up to the weekend. However, shipment volumes are comparatively low because of the Christmas holiday season, a trader said.

Copyright Reuters, 2016