The Danube's water level in Budapest fell to 26cm on July 28, breaking the previous record low of 33cm set in 2018 and the river’s flow rate is round 60% below its average level.

The drought affecting the broader region has brought water freight transport to a halt on much of the Danube, which is also negatively impacting tourism, business online VG.hu writes. The crisis is exposing Hungary's long-standing vulnerability to climate-driven water shortages

Authorities said the prolonged heatwave affecting both the Alps and the Carpathian Basin, combined with the lack of meaningful rainfall across the Danube and Tisza catchments, means water levels are expected to decline in the coming days. Forecasts suggest little immediate relief, as another heatwave develops over the region, with temperatures expected to reach 40 degrees in the coming days.

The Danube, one of Central Europe's most important inland transport corridors, linking Germany and Austria with the Black Sea, serves as a vital export route for Hungary's agricultural sector. Much of the country's wheat, maize and oilseed harvest is transported by barge to Romania's Port of Constanța before being shipped to global markets.

With river depths in several sections falling below navigable levels, barges carrying grain are operating with 20-40% less cargo than normal, while some vessels have been forced to reduce loads to just 10-20% of capacity. The lower utilisation has sharply increased transport costs as more voyages are required to move the same volume of goods.

Although exporters can switch to rail or road transport, these alternatives are significantly more expensive and could erode the competitiveness of Hungarian grain on international markets, Botond Szalma, chairman and CEO of logistics company Plimsoll Ltd, which specialises in international freight transport, told VG.

The situation is being compounded by broader regional pressures. Ukraine has increasingly relied on Danube shipping routes after Russia's attacks on Black Sea port infrastructure reduced the country's maritime export capacity. Restrictions at Russia's Black Sea port of Novorossiysk and ongoing security risks in the region have redirected additional freight to the Danube, further straining an already-constrained transport corridor.

Fuel logistics have also been affected. Barges carrying petroleum products from Austrian, Slovak, and downstream Danube refineries have reportedly been delayed, raising concerns that smaller fuel distributors in Hungary could face supply disruptions if low water levels persist.

Industry representatives argue the crisis highlights a structural weakness unique to Hungary. Unlike much of the upper Danube, where a network of dams and navigation locks regulates river levels, Hungary's section of the river remains undammed following the abandonment of the Bos-Nagymaros hydroelectric project after the fall of communism.

Logistics experts say this leaves the country particularly exposed during prolonged droughts, with ports becoming inaccessible and freight operations grinding to a halt whenever river levels fall sharply.

In several stretches of the river, vessels can no longer navigate safely, forcing operators to leave ships waiting for higher water levels.

Around Budapest, sightseeing boats and hydrofoil services have been running reduced schedules, while several international cruise operators have cancelled or shortened itineraries, transferring passengers by bus instead.

The worsening drought has also intensified concerns about Hungary's broader water management strategy. Opposition politicians and agricultural organisations argue that the country is no longer facing occasional droughts but a structural water crisis driven by climate change, pointing to years of below-average rainfall and declining groundwater levels across the Great Plain.

The government has acknowledged the growing challenge, establishing a National Water Coordination Centre earlier this year to coordinate drought mitigation efforts and expanding programmes aimed at retaining water in wetlands, canals and floodplains rather than allowing it to drain out of the country.

Critics argue these measures remain largely reactive and fall short of the large-scale infrastructure investments needed to adapt Hungary to increasingly frequent periods of extreme heat and prolonged water scarcity.