Kiel Canal in crisis due to Russia sanctions

The Kiel Canal is experiencing declining ship passages and cargo volumes due to sanctions against Russia. The annual report presented on Thursday shows transported cargo down to 69.5 million tons. The Kiel-Canal Initiative calls for measures to boost the waterway's appeal.

The Kiel Canal, one of the world's busiest waterways, is grappling with several challenges. According to the annual report presented on Thursday, transported cargo fell to 69.5 million tons last year, compared to 75.6 million tons in 2024. Heiko Böschen, head of the Seeschifffahrt department at the Generaldirektion Wasserstraßen- und Schifffahrt (GDWS), called this a "respectable result" given the collapsed Russia traffic.

Sanctions against Russia related to the war of aggression in Ukraine are the main cause. Last year, only 531 ships to or from Russian ports carried 1.85 million tons of cargo through the canal. In 2021, there were 2,771 ships with over 14 million tons.

The number of ship passages dropped to 22,262, a 10.5 percent decline from 24,866 the previous year. However, the gross register tonnage rose to 5,750 from 5,688, as ships grow larger. Böschen explained: "The sheer number of ships is not relevant for the NOK's balance, as small ships carry less cargo." Recreational boats also decreased: 10,685 last year versus 11,542 before.

On a positive note, investments totaled 246 million euros, the second-highest amount after 297 million the previous year, as reported by Martin Boll from the Küste Management department. The federal government added 71 million euros for maintenance and operations. Construction of the fifth lock chamber in Brunsbüttel is set to finish by the end of 2026. Over the past 15 years, around one billion euros have been invested, with two billion more planned.

The Kiel-Canal Initiative expresses concern. Chairman Jens B. Knudsen demands deepening by at least one meter and a strategic turnaround: "The canal is not a mandatory route for many shipowners but an option – and that's why reliability, speed, and predictability matter." Since 2023, a speed limit of 12 knots has been in place, prolonging passages and making the Skagen route more appealing. Knudsen warns: "For shipowners, it's ultimately about the overall equation of time, costs, and predictability. If the canal remains slower and less predictable long-term, it loses attractiveness compared to the alternative route via Skagen." The first section of the eastern stretch expansion was opened in November with Federal Transport Minister Patrick Schnieder (CDU).

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Illustration of U.S. strikes on Iranian mine-laying boats in the Strait of Hormuz amid Iran's closure claim and shipping attacks.
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Iran says it has closed the Strait of Hormuz as U.S. reports strikes on suspected minelayers amid rising shipping attacks

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Iran has claimed the Strait of Hormuz is closed after a surge of attacks on commercial vessels since late February, while the U.S. military says it destroyed Iranian mine-laying boats near the vital oil chokepoint—an escalation that has heightened fears of prolonged disruption to energy and trade flows.

The vast waterway in China’s southwestern Guangxi region is set to open before the end of 2026, according to state media reports. The mega-project will provide China’s landlocked southwestern provinces with direct access to global shipping lanes, making it faster and cheaper to transport goods between the Chinese interior and neighbouring countries.

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South Korea's foreign ministry emphasized on Sunday the diverse situations facing ships and nations in the Strait of Hormuz, following the recent transit of two Japan-linked tankers through the Iran-blocked waterway. This comes amid the ongoing crisis sparked by late February U.S.-Israeli strikes on Iran, which stranded 26 South Korean vessels carrying 173 sailors. Seoul prioritizes crew safety while seeking to restore navigation freedom under international norms.

Amid the ongoing Strait of Hormuz crisis, with no lasting ceasefire in sight despite an earlier US-Israel-Iran truce, the German navy has begun concrete planning for a possible deployment to secure the strait. Defence Minister Boris Pistorius outlined the prerequisites, including a legal framework and Bundestag mandate.

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Water volumes equivalent to almost two Lake Vänern have been pushed out of the Baltic Sea this year due to persistent easterly winds and high-pressure blocking. The record-low water levels offer some hope for the oxygen-depleted bottoms in the inland sea. Oceanographer Jörgen Öberg at SMHI warns, however, that improvements require many favorable steps.

Amid the ongoing Iran conflict, where Iran has restricted Strait of Hormuz access to non-US/Israeli-linked ships, at least eight vessels—including three Iran-linked tankers—passed through on Tuesday, the first day of the US naval blockade on Iranian ports announced by President Donald Trump. Shipping data shows no interruptions, despite US claims of no breaches.

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The city of kiel is preparing several major infrastructure projects for 2026 that will impact traffic. From road renovations to intersection rebuilds, sections in the city are set for renewal. The works mostly start in march and last until 2028.

 

 

 

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