Trade and Commerce in the Middle Ages

The conquest of Spain by Islam through the Maghreb in the 7th and 8th centuries led to a significant expansion of trade in the Mediterranean.

By Hrothsige Frithowulf - History Editor
Thomas de Saluces , Le Chevalier errant

After the Islamic conquests spanning from the 7th to the 8th centuries, which extended from Maghreb to Spain, trade activities in the Mediterranean significantly increased. As the 10th century emerged, this intersection of three distinct civilizations—Latin, Byzantine, and Muslim—witnessed the convergence of numerous sea routes linking the Western and Eastern realms.

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As time progressed beyond the 12th century, the Mediterranean, alongside the northern waterways encompassing the North Sea and the Baltic Sea, emerged as the predominant epicenters for trade activities throughout the medieval European expanse. By the end of the 8th century, the city of Baghdad (founded in 762) became the hub of global trade, where the main routes converged.

Key Takeaways: Trade in the Medieval Times

  • Despite its predominantly localized nature, trade during the medieval period was interconnected through various routes.
  • One of the most renowned long-distance trade routes was the Silk Road, connecting Europe and Asia and enabling the exchange of goods over distances.
  • The Crusades introduced Europeans to novel goods and ideas from the East, influencing trade dynamics.
  • Technological advancements, including the waterwheel, improved plows, and innovative agricultural techniques, indirectly supported trade by boosting agricultural productivity.

Medieval Trade in the East

 Caravan on the Silk Road. From Sheet 10, Atlas catalan.
Caravan on the Silk Road. From Sheet 10, Atlas catalan, 1375. Image: Katalanischer Weltatlas / P.M. History 2/2011.

Muslim traders efficiently employed both overland and maritime pathways to traverse their extensive empire. Their journeys spanned as far as the remote reaches of the East, culminating in encounters with the utmost edge of the known realm, notably China.

From these expeditions, they procured prized commodities such as ceramics and luxurious silks. The caliphs fervently fostered the expansion of trade activities, consequently elevating the social standing of merchants within Islamic society. This privileged status encompassed legal safeguards and an exceptional financial system.

During the 10th century, the prominence of Baghdad waned as Cairo ascended to a dominant position. This shift transpired due to the ascendancy of the Fatimid caliphs, who established their rule over Egypt and Syria. A segment of the trade that previously traversed the Persian Gulf underwent redirection toward ports along the Red Sea.

From there, goods were transported via caravans along the Nile to ultimately reach Cairo. The bustling city of Alexandria materialized into a pivotal hub for trade interactions spanning both Christian and Muslim domains in the Western world.

Medieval Trade in the Mediterranean

Très Riches Heures du Duc de Berry
Très Riches Heures du Duc de Berry detail. The Peasant Scene in the foreground represents sowers. On the right are a man throwing seeds, magpie birds, and crows stealing some seeds. In the background is a scarecrow in the shape of an archer. Image: Condé Museum.

During the Middle Ages, a significant historical phenomenon unfolded in the Mediterranean region known as the Crusades. Initiated with the declaration of the First Crusade in 1095, this marked the beginning of a series of campaigns that eventually established Latin dominions in the Holy Land. Amidst these military endeavors, the Mediterranean retained its role as a vital hub for trade and the exchange of cultural and scientific knowledge.

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Concurrently, the Reconquista—a series of conflicts between Christian Spanish kingdoms and Muslim territories—contributed to the rise of Catalan merchants and the growth of the Barcelona port. However, the fleets of four Italian maritime republics—Amalfi, Pisa, Venice, and Genoa—largely facilitated trade along the route connecting Al-Andalus to the Maghreb, Syria, and Egypt.

Interestingly, the Crusades, predominantly Christian military ventures, had a limited direct impact on the expansion of extensive commerce during this period. Despite ongoing conflicts, the commercial connections between Eastern and Western regions persisted, resulting in numerous contributions from the East, including spices, fruits, paper, astrolabes, and nautical charts.

These maritime powers significantly extended their commercial influence throughout the Mediterranean. Their activities encompassed the import of crucial raw materials like cotton, silk, and spices, along with the export of sought-after goods such as textiles, weaponry, and glassware, meeting the demands of the Mediterranean trade network.

Major International Fairs

Fair scene from Thomas de Saluces' Chevalier Errant, circa 1403. Bibliothèque Nationale de France, Manuscrit Français 12559, Folio 167.
Fair scene from Thomas de Saluces’ Chevalier Errant, circa 1403. Bibliothèque Nationale de France, Manuscrit Français 12559, Folio 167. Image: BnF.

Oriental textiles were in competition with fabrics crafted in the prominent drapery centers of Flanders. These textiles were then vended to Italian merchants during the Champagne fairs, renowned as pivotal international trading centers since the 12th century.

The epicenters of medieval trade, positioned along the North Sea-Mediterranean axis, saw the influence of these grand fairs, leading merchants to evolve into entrepreneurs. The fairs were widespread across Europe, encompassing cities like London, Reims, Châlons-en-Champagne, Troyes, Cologne, Leipzig, Geneva, and more.

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Spanning a duration of six to seven weeks, these fairs adhered to a meticulously crafted timetable, ensuring their consecutive occurrence. The commercial transactions consummated during these global fairs not only spurred the production of artisanal goods but also catalyzed technological progress.

Prominent medieval trade fairs, such as the Champagne Fairs in France and the Frankfurt Fair in Germany, facilitated the exchange of goods across regions.

A growing trade in agricultural surpluses and mass-produced artisanal goods like woolen fabrics, weapons, timber, and iron served as evidence of the Western world’s economic dominance. In reciprocity, the burgeoning markets of Northern Italy and Flanders flourished with commodities like spices, alum, and unrefined silk, stimulating growth.

Venice’s Trading Power

This 15th-century illustration from the Bodleian edition of The Unveiling of the World, preserved in Oxford, England, shows Polo leaving Venice. The Basilica of San Marco with its four bronze horses (left) and the Doge's Palace on the right.
This 15th-century illustration from the Bodleian edition of The Unveiling of the World, preserved in Oxford, England, shows Polo leaving Venice. The Basilica of San Marco with its four bronze horses (left) and the Doge’s Palace on the right. Image:

Commencing in the 10th century, Venetian merchants took root in Constantinople, where they possessed harbors and an allocated district. They were granted the privilege to engage in unfettered commerce across the expanse of the Byzantine Empire. The populace of Venice erected a genuine colonial dominion within the Mediterranean realm through many trade hubs.

Nevertheless, the Venetian enterprise encountered competition from Pisa and Genoa, whose trading enclaved on the oriental shores of the Mediterranean (and even extending into the Black Sea) enticed caravans originating from locales such as Baghdad.

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During the 12th century, Byzantine rulers exhibited a preference for Pisa and Genoa in a bid to curtail Venice’s sway over Byzantine trade. They harnessed the rivalry existing between these Italian city-states. Relations with merchants from Italy underwent a decline, culminating in the tragic slaughter of all Latin individuals found in Constantinople during the year 1182.

In an endeavor to reinstate its commercial standing, the Republic of Venice funded the Fourth Crusade and, in exchange, orchestrated the diversion of the Crusaders toward Constantinople (İstanbul). This led to the city’s capture in 1204, resulting in its pillage and the subjugation of the Byzantine Empire. Venice’s preeminence in the economic domain was henceforth beyond challenge.

The city honed its financial methodologies (comprising loans, letters of credit, and insurance), giving rise to prominent banking enterprises filled with extensive branches. The Venetians even mandated the employment of their currency, the Venetian ducat, minted in 1284, for all transactions within the eastern Mediterranean trade.

The Rise of Trade in Northern Europe

Map showing the main trade routes of late medieval Europe.
Map showing the main trade routes of late medieval Europe.

Starting from the 12th century onwards, in the distant reaches of the Western world, specific regions surrounding the North Sea and the Baltic Sea underwent considerable advancements in commerce.

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Notable instances of this occurred in Flanders (including Bruges, Ghent, and Arras) and the Baltic nations (Hamburg, Lübeck, Riga, and Stockholm). Additionally, London emerged as a crucial economic hub during the 13th century by forging connections with the network of the Hanseatic League.

Originally established in Germany, the Hanseatic League, which initially consisted of merchant coalitions from the same city, developed into a distinctive commercial alliance comprising the most affluent trading metropolises in Northern Germany.

Merchants often formed guilds to protect their interests and regulate trade. The Hanseatic League, a powerful confederation of merchant guilds, was particularly influential in northern Europe.

Boasting a roster of seventy cities, with Hamburg and Lübeck at the forefront, the Hanseatic trade reaped the benefits of privileges that extended beyond national borders. European kings granted them these privileges.

Hanseatic merchants flourished within the harbors of England and the Netherlands, with a particularly strong presence in London and Bruges.

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Along the coastlines of the Baltic Sea, they pursued resources such as iron, timber, and fish while also trading in salt and German-crafted products. Active from the 12th through the 17th centuries, the Hanseatic League’s decline culminated with the conclusion of the Thirty Years’ War in 1648.

Bruges: The Venice of the North

Labors of the Months: August, from a Flemish Book of Hours (Bruges)
Labors of the Months: August, from a Flemish Book of Hours (Bruges). Image: München, StB, cod. lat. 23638, fol. 9v.

The wool industry in Flanders stood as the catalyst behind the commercial flourishing of the coastal city of Bruges. It served as a crucial nexus, bridging the Mediterranean and northern trade routes, thereby fostering burgeoning transit commerce.

Italian ships arrived at the harbors of Bruges and docked there. These ships were carrying valuable cargo from the East, which included highly sought-after spices and other exotic merchandise.

Bruges hosted important trade fairs and markets that attracted merchants from various regions. The Bruges Fairs were renowned and attracted traders from across Europe.

These riches found new pathways to England and various corners of the European expanse. As early as the 1280s, the inaugural systematic sea journeys took shape, navigating the waters of the Strait of Gibraltar and seamlessly connecting the Mediterranean to the North Sea.

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The maritime trade of Bruges experienced a boon, capitalizing on the waning prominence of the Champagne fairs from the onset of the 14th century onwards.