LOW water levels on the Rhine and Danube mean ships cannot sail fully loaded on both rivers south of Cologne and Duisburg, Reuters reports.

Dry weather in recent days had caused river levels to drop further, say German traders. Water levels have been unusually low since early August.

The Danube is also too low for ships to sail with full loads along the entire German section of the river, they said.

Low water means vessel operators impose surcharges on freight rates, increasing costs for cargo owners. More vessels are needed to transport cargo, also increasing costs.

The Rhine is important for grain, mineral, coal and oil shipments while the Danube is an important route for heating oil and for eastern European grain exports to western Europe.