Northern European Trade in the 16th-17th Centuries

2024.12.14

In the last two centuries of the Middle Ages, significant changes occurred in the nature and structure of European trade. The center of international trade shifted northward. Mediterranean shipping declined, while Dutch and later English shipping rose to prominence. This shift was driven by the emergence of a modern, broader-based international trade system, which replaced the medieval long-distance trade that primarily served the luxury needs of the nobility and wealthy bourgeoisie. By participating in this system, the Dutch became the primary transporters of bulk consumer goods. Before their arrival, long-distance trade was dominated primarily by Italian merchants and, from the 13th century, by the members of the Hanseatic League. Trade mainly centered around two categories of goods: Eastern spices and luxury items, and Flemish textiles, which were valuable enough to justify the high costs of long-distance transportation. Overland routes connecting Italy with Western Europe, including Alpine passes like the Brenner Pass (linked to Venice) and the Saint Gotthard Pass (connected to Genoa), also played an important role during this period.

In contrast, Northern European trade relied heavily on maritime transport from its inception. This was partly due to the presence of navigable rivers in the region and the less developed road networks in the north compared to the territories of the former Roman Empire. The north also benefited from an abundance of timber, essential for shipbuilding, which was readily available in large quantities. These favorable conditions—such as the evolving division of labor, rivers, and forests—enabled the development of strong trade networks by the late Middle Ages. Eastern European grain and timber found markets in the Netherlands, while cheap textiles, manufactured goods, and Eastern spices were shipped back. Although these goods dominated trade, other items were also transported.

In the 14th and 15th centuries, Hanseatic ships transported most of the goods, but by the 16th century, the Dutch had taken over. Their dominance was facilitated by the establishment of a direct maritime route through the Øresund Strait, connecting the Atlantic and Baltic coasts. Consequently, the Hanseatic Hamburg-Lübeck route lost its significance. Bruges became silted up during this period, shifting the trade center to Antwerp, where the Hanseatic League had no privileges. Despite this, Hanseatic merchants still played a role in the 16th century. The rivalry between the Hanseatic League and the Dutch centered on transporting bulk goods such as fish, grain, salt, and wool. Grain was especially needed to supply the industrialized Netherlands, but during times of famine, England and France also imported it, while Spain was almost always a buyer. Polish grain even reached the Mediterranean markets in the 16th century, with Gdańsk serving as the main hub. The growth of trade is evident in the increase of ships passing through the Øresund Strait—from 1,300 annually in the early 16th century to 5,000 by the century's end. Records show that most ships passing through the strait were Dutch. By the late 16th century, Antwerp's dominance waned, and Amsterdam emerged as the new trade hub. During the 17th century, Amsterdam became the center of European trade, serving as a major collection and distribution point for goods.

Another key factor in the Dutch rise was the so-called "great fishery." They owed their dominance to a new innovation. In the early 16th century, salted fish primarily came from the Baltic Sea, where salting took place onshore using salt delivered by Hanseatic ships, with the condition that only these ships could transport fish. This arrangement was an essential part of Hanseatic trade. The Dutch innovation streamlined the entire process (fishing, salting). They developed a specialized fishing vessel called the buizen, which was both fast enough for fishing and large enough to allow fish to be gutted, salted, and stored onboard. These boats remained at sea continuously, while another type of vessel, the ventjager, regularly collected the salted fish and brought it to shore. This method significantly reduced processing time, allowing fresher fish to reach the market. The Dutch sourced salt from their own sea inlets and also imported it from Spain. Gradually, they took control of the entire fish trade, even supplying England with fish. Fish was a staple food during Lent in Christian Europe, making its consumption vital.

The structure of maritime trade also changed. Previously focused on luxury goods, it shifted towards bulk goods following changes in production. Cheaper, coarser textiles and fabrics catering to poorer social classes began to appear. Until 1595, production was centered in Flanders and Antwerp. Wool was sourced from England and Spain, with English wool being transported by English merchants and Spanish wool by Dutch merchants. After 1617, England ceased exporting wool to focus on its own growing textile industry.

Textile trade was more complex than wool trade. In the first half of the 16th century, English and Hanseatic merchants (who held privileges in London) transported finished textiles to Scandinavia and the Netherlands. English merchants also shipped semi-finished textiles to Flanders for dyeing and finishing, with their company, the Merchant Adventurers, operating in Antwerp. Antwerp was the center of textile trade, from where finished goods were transported to Spain for raw wool and Eastern spices, to Poland for grain and timber, and along the Rhine to southern German cities for copper, metal goods, and wine. By the late 16th century, Amsterdam replaced Antwerp as the textile industry's center. After Antwerp's decline, English merchants sought new locations for their depots, eventually settling in Hamburg, which transitioned to Dutch-English trade and became the distribution center for textiles in East-Central Europe. This marked the decline and fragmentation of the Hanseatic League.

By the 17th century, the Dutch had become the primary carriers in Northern European trade; of the 714 ships docked in London in 1601, 314 were Dutch. However, the Dutch were at a disadvantage in timber trade due to the lack of local resources. Their dominance depended on controlling timber trade, with major sources in the southern Baltic and Norway. Timber had to be sourced close to the coast to remain economically viable for transport; beyond 20 miles, land transportation became unfeasible unless logs were floated as rafts, which diminished quality. Prolonged soaking led to rapid drying, creating biases against imported timber, as ships made from it lasted only 15-20 years.

Both Hanseatic, Dutch, and smaller-scale English shipping in the North and Baltic Seas depended on the goodwill of powers controlling the Øresund Strait. Revenues from the strait enriched Denmark in the 17th century and Sweden later in the century. After the Hanseatic League's decline, the competition between the Dutch and English focused on securing the so-called "northern crown." England's future advantage lay in aligning with Sweden, the eventual victor, while the Dutch maintained good relations with Denmark. Timber shipments required large, military-escorted convoys, ultimately favoring the English. By the 18th century, England secured trade dominance through its naval power.

J. H. Parry The Economy of Expanding Europe in the 15th and 17th Centuries. (ford, Märcz Róbert)