BASF ( OTCQX:BASFY ) said Friday its output has not yet been affected but it cannot rule out making production cuts at individual plants in the coming weeks due to low water levels on the Rhine river.
BASF ( OTCQX:BASFY ) said for now it is concentrating efforts on chartering vessels suitable for shallow water and is seeking transport alternatives such as railways.
The Rhine is one of the key logistics arteries linking Germany's industrial heartlands with North Sea ports, from which products are exported to world markets.
Water levels on the Rhine have been falling due to hot weather, sending shipping costs higher because vessels are unable to sail fully loaded.
BASF ( OTCQX:BASFY ) shares are down ~40% YTD and now trade at a highly attractive risk/reward level, Cavenagh Research writes in a bullish analysis published on Seeking Alpha .
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BASF warns of potential production cuts due to low Rhine water levels