Discover Rhenus on the Canary Islands

In many ways, the Canary Islands represent one of the most unique regions in Spain. It is not difficult to understand why: it is an insular and outermost territory (1,700 kilometres separate it from the mainland), to which must be added its dispersion in seven islands, which also have mountainous terrain and various areas of limited accessibility. For all these reasons, if we apply a logistical perspective, we find ourselves in a region of enormous complexity. This is why the proper functioning of its supply chain represents a crucial element for both companies and society as a whole.

In this scenario, maritime and air routes are vital to connect with the mainland and between islands, as is their connection with land transport. There are many elements that need to be assessed. Sea transport is essential, but can be slow and weather dependent, while air routes are fast but limited in terms of cargo capacity. This is where Rhenus' leadership comes in, optimising the use of all modes to ensure smooth distribution.

An economy in full growth

All this complexity is increased to the same extent that the Canary Islands market is experiencing significant growth, which inevitably leads to a significant increase in freight traffic. 

Without going any further, in a previous article we already highlighted how the transport of goods between the Canary Islands and the rest of Spain continues to grow and in 2023 reached its highest commercial value(18,691 million euros) and, according to official data from the National Statistics Institute (INE), represents approximately 4.1% of the total national GDP, being one of the regions with the highest economic growth in recent years, driven mainly by the tourism sector.

In this regard, it is clear that the economy of the Canary Islands is largely based on tourism, which impacts on the demand for specific products and services for this sector, resulting in seasonal fluctuations in logistical needs, with peaks in the high seasons.

In terms of production, the Canary Islands have a specialised agricultural (bananas, tomatoes, flowers) and fishing sector that supplies both local and national markets. And this is yet another challenge, as these are products that require fast, refrigerated logistical solutions with specific sanitary controls. 

But it is far from being the only important industrial activity in the region; there are many others of great importance in the islands: energy, chemicals, pharmaceuticals, construction and tobacco, and at Rhenus we are very attentive to all of them.

Tax regulation, fundamental for understanding the reality of logistics

Due to its location and other particular historical and economic conditions, it is not surprising that the Canary Islands have their own tax regime. This provides for lower taxation in relation to the rest of Spain, which affects both trade and logistics. Here are some important considerations:

• Although they are Spanish territory, they are not part of the EU Customs Union, which implies additional customs controls when moving goods between the mainland and the islands. This adds bureaucratic complexity.
• The existence of free zones and the Canary Islands Special Zone offers tax advantages for the import and export of goods, as well as incentives to attract investment. This makes it easier for the islands to be used as a logistics hub between Europe, Africa and America, as they reduce storage and redistribution costs, but also require strong logistical control to manage the different tax and customs regulations.

And this is where we come to another key point, customs management, which is another decisive element in adapting to these fiscal and customs singularities. The application of taxes, such as the IGIC or the Arbitrio Insular de Entrada de Mercancías (AIEM), can represent an added difficulty in logistics with the archipelago. Moreover, its management can be decisive in terms of efficiency.

How is Rhenus structured in the archipelago?

Our offices in Tenerife, Gran Canaria, Lanzarote and Fuerteventura are strategically distributed to guarantee comprehensive coverage of the entire archipelago: in the main ports and their immediate surroundings, with quick access to the terminals of the main shipping companies to facilitate transport with the Peninsula and the other islands.

The location of our facilities in port environments is key in an archipelago and an economy such as the Canary Islands, so dependent on maritime flows with the mainland. And it is even more strategic in the case of the ports of Tenerife and Las Palmas, which account for up to 91% of Canary Islands imports from Spain.

Another strength of our Canary Islands branches is the supply capacity they allow us to offer in the territory. Through them we cover approximately 90% of the industrial land and 95% of the inhabited areas, including both the most tourist areas and those with the highest density of residents, which allows us to respond to practically all the needs of its economy.

Each of these facilities is equipped with customs warehouses, enabling us to assume complete control of the logistics chain, from origin to final destination:

• Temporary storage warehouses (ADT): they are authorised by the tax agency to store non-cleared goods coming from imports (from outside the European Community) and awaiting customs clearance. Having this type of facility offers enormous advantages, such as avoiding the immediate payment of duties, better planning and greater security.
• LAME warehouses (Local Authorised for Export Goods): these allow exporting companies to carry out all customs procedures directly at their facilities, thus avoiding the transfer of goods to an external customs area, which would entail time and costs for the client.

We complete this network in the archipelago with the structure of our collaborators in La Palma, Gomera and El Hierro, with whom we have a long history of working together to provide services in these islands.

A team to bring the Canary Islands closer to the mainland and the world

Structure and facilities are fundamental, but we have left the most important thing for last: people. And this statement, which would be valid for logistics performance in any region, is especially important in the Canary Islands due to the importance of specialised knowledge in the region. 

Thus, we can say that we have a team of 220 professionals distributed among the different facilities and departments of our logistics activity. 160 of them work in the field, but we also have another 60 professionals on the Peninsula dedicated entirely to traffic with the Canary Islands.

With all this, we can say, with humility, but also with pride, that we feel part of the growth of the Canary Islands, and protagonists in bringing the archipelago closer to our 1320 installations distributed in more than 70 countries. 

All that Rhenus can offer in the Canary Islands

Now that we have seen the challenges of island logistics and Rhenus' assets to meet them, it is time to show what we can do. 

Road, sea and air transport

When we talk about transport to the Canary Islands or between islands, it is necessary to combine different modes of transport. Not only can we offer all distribution services in a comprehensive manner, but we also design the best options in each case and the best combination of the various modes of transport. 

• Full load (FCL) and part load (LCL) services by sea with guaranteed regular departures for connectivity with the mainland and internationally, as well as preferential maritime shipments. 
• Daily maritime connection between islands: partial and full cargo traffic, as well as express and conventional parcels, between the islands of the archipelago with 24-hour services, guaranteeing next day delivery.
• Road transport: we have a dense road distribution network on each of the islands with a fixed fleet of more than 70 trucks.
• Air transport: fast solutions for urgent and/or high value-for-money shipments.

Customs procedures 

The fact of having customs warehouses (ADT and LAME) already represents a great added value in this sense, but at Rhenus we go much further. From the beginning, we have been committed to integrating the processing of these procedures in the transport and storage value chain, acting as the sole interlocutor for companies throughout the entire supply chain.

• We have a team of experts in Canary Islands tax and customs regulations with the aim of simplifying the complexity of logistics with the Canary Islands.
• Certification as an Authorised Economic Operator (AEO): having this recognition allows us to streamline customs processes and offer our clients a higher level of confidence and security in all their procedures with Customs.
• We are an authorised company to handle pharmaceutical, health and soivre products in our facilities, and many other logistics operators trust Rhenus to carry out inspections and control procedures in our facilities.

Logistics 

We take care of all the management associated with warehousing, including both facilities to consolidate your goods and picking services to prepare orders for distribution.

Overnight delivery

Overnight delivery can be either attended or unattended in-store, with access control via a turnkey system. This is a distribution model for companies in the retail sector to which we deliver goods during the night and outside business hours, without the need for reception staff in the shops.

• Large companies are increasingly demanding this service, as it brings numerous advantages to their logistics operations by reducing their storage costs and enabling faster and more efficient distribution of products at points of sale.
• It is also a more sustainable option, as it reduces the number of journeys, takes advantage of a greater load capacity per vehicle, reduces CO2 emissions by more than 20% and improves urban traffic congestion.

TRW (Transport Related Warehousing)

Our TRW warehouses in Tenerife and Las Palmas provide an optimal location for your distribution and the economic advantage that you do not have to hire your own logistics facility.

• It offers a complete and customised solution consisting of the transport of purchases, storage, consolidation and handling of goods, as well as distribution transport.
• The location is no coincidence, these facilities are located in the two most populated areas of the archipelago, which are its main commercial centres, which can be a great advantage for ecommerce logistics, for example.

Temperature controlled

We have a customised service designed for the food and pharmaceutical sectors, offering a cold chain that guarantees the optimum preservation of sensitive products, such as perishable foodstuffs and medicines.

The advantages of a comprehensive vision, our own structure and an international dimension

These three aspects are transversal to all the services we provide in the Canary Islands, as they allow us to transfer to the companies operating in this market all the advantages of an international group capable of managing the entire supply chain:

• Own structure at origin and destination, ensuring total control at every stage of the process.
• Extensive distribution network in the archipelago, with daily distribution between islands and delivery to specific points within each destination. 
• International dimension, thanks to our global network, which allows us to connect the Canary Islands with the Iberian Peninsula, Europe and the rest of the world.

Other value-added services

• Here you can find other services that we also provide in the Canary Islands.

What economic sectors does Rhenus operate with in the Canary Islands? 

Our diversified operations allow us to work with companies and goods from any economic sector, but throughout our trajectory we have accumulated a greater specialisation in the logistics of the following business areas:

• Retail and clothing: we operate daily in the main shopping centres and consumer markets in the Canary Islands, and manage the logistics of many companies in the textile, clothing and souvenir sectors.
• Electronics and machinery: we offer logistics solutions for the distribution of electronic products, machinery and specialised equipment. We also manage office products, such as photocopiers, providing a complete service to this type of industry.
• Perfumery and cosmetics: Rhenus has become one of the strongest logistics operators in the distribution of perfumery and cosmetics products, thanks to the trust of some of the main companies in this sector.
• ADR goods: we have the infrastructure, the fleet and the professionals necessary to take on the entire ADR (dangerous goods) transport chain.
• Food and pharmaceutical products: our temperature-controlled services allow us to meet the needs of these two key sectors, especially in the transport of perishable products or medicines.

Would you like to meet our team on the Canary Islands?

• Alexis Montesdeoca, Regional Manager Canary Islands of Rhenus Road Freight Spain.  
• Javier Susín, Branch Manager Rhenus Logistics Tenerife.
• Guillermo Montesdeoca, Head of Rhenus Logistics in Las Palmas.

If you need more information or any further details about our transport and logistics services in the Canary Islands, please contact our team of experts.