Spanish ports are experiencing a surge in cargo volume, driven primarily by two factors: ongoing security concerns in the Red Sea and disruptions to overland transportation within Europe. This development, while positive for Spanish port authorities and related businesses, comes amidst a backdrop of international tensions and domestic challenges.
The key driver of the increase is the ongoing crisis in the Red Sea, where attacks on shipping vessels have prompted companies to divert their cargo ships bound for Europe around the southern tip of Africa instead. This longer route necessitates utilizing Spanish ports as vital refueling and resupply points, leading to a significant rise in activity. Ports like Las Palmas in the Canary Islands, strategically located off the coast of West Africa, have witnessed a staggering 25.4% increase in cargo volume compared to the same period last year.
Adding to this trend are widespread blockades by European farmers protesting various economic and policy issues. These blockades have significantly hampered land-based transportation routes, leading businesses to seek alternative methods for delivering goods. This has resulted in a surge in cargo being shipped through Spanish ports, particularly in the northern regions. The Spanish retail and food industry association, Aecoc, reports that northern ports like Santander and Bilbao have experienced a threefold increase in the volume of goods in transit compared to January 2023. This is attributed not only to the rerouting due to the farmer protests but also to the recent expansion of the container terminal in Santander, boosting its handling capacity.
While the overall increase in cargo traffic is a welcome development for Spanish ports, the underlying factors causing it raise concerns. The Red Sea crisis poses a significant threat to international maritime security and global trade. Additionally, the farmer protests highlight ongoing challenges within European economies and the potential impact on supply chains.
Spanish port authorities are cautiously optimistic about the future, acknowledging the potential for continued growth in cargo volume. However, they emphasize the need for a resolution to the Red Sea crisis and a de-escalation of the farmer protests to ensure long-term stability in the European transportation sector.