Dividends and Rivers slowing to a trickle as drought poses hazard to German industry

For generations, the Rhine River in Germany has bringing in goods to the German cities along the route (the closest American example is the Mississippi River). Cities grew up along the river and river transportation has a competitive advantage over trucking and railways. The economic lifecycle depends on the Rhine River. If you have seen European weather coverage this year there are droughts and wildfires.

In an article by Daniel Niemann and Frank Jordans of Associated Press, the water levels are reaching critically low points which means the larger cargo ships can not make the journey, smaller cargo ships are needed. In the world of economics, smaller ships costs more for shipping, for example normally a 2,200 metric tonnes of cargo could be transported, the lower levels means transporting 600 tonnes.

In Germany, unlike other European countries, transporting goods by inland waterways in more important, which means headaches for German factories and power plants.

Linking to dividend paying stocks, all of us are dependent on nature to be reasonable stable and when it is we typically do many things taking nature for granted. Adjustments can be made, but they often take time and money.

There are more questions than answers, till the next time – to raising questions.


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