Logistics services in Iceland.

Iceland logistics overview: modes, trade and gateways

Logistics services in Iceland rely on seaports and airports, as the country is not landlocked. Containerized sea freight moves through about 43 ports, including Grundartangi, Reykjavik, Seydhisfjordhur and Vestmannaeyjar.

Air freight uses 8 airports with scheduled services, led by Keflavik and Akureyri. With about 425,000 TEU handled and about 192 million tonne-km of air cargo, shippers can arrange both ocean and air services for exports like aluminum and fish, and imports such as refined petroleum and cars.

Logistics services in Iceland benefit from a merchant fleet of 39 ships, mostly general cargo and other vessel types. CMA CGM has an office presence in Reykjavik, and local carrier Eimskip is headquartered in the country. With a coastline of about 4,970 km and short reported border-compliance times for exports and imports, goods physically enter and leave primarily by sea and air, then distribute internally by road.

Freight forwarders in Iceland should be familiar with container flows through ports such as Grundartangi and Reykjavik and smaller ports like Seydhisfjordhur and Vestmannaeyjar. Look for providers that understand Iceland’s role in trade with partners such as the Netherlands, Germany, the USA, the UK, Norway and China, and that can plan routings using carriers like CMA CGM or local carrier Eimskip.

The logistics performance index for Iceland is above the world median, but international shipments score relatively lower than customs, tracking and infrastructure. When choosing a freight forwarder or customs broker, check their experience with OECD trading rules, their handling times on 1 day export and import processes, and their ability to manage both air cargo through main airports such as Keflavik and Akureyri and sea freight through the country’s 43 ports and 5 oil terminals.

FCL and LCL shipping from and to Iceland moves through a coastal network of about 43 seaports. Key locations include Grundartangi and Reykjavik, which are classified as medium-sized, and Seydhisfjordhur and Vestmannaeyjar, classified as small. Cargo pier depths vary, from about 4.9 m at Vestmannaeyjar to about 12.5 m at Grundartangi and about 21.6 m at Dalvik.

Iceland’s container throughput is about 425,000 TEU per year, ranking 93rd of 168 countries worldwide and 25th of 36 in Europe & Central Asia. The liner shipping connectivity index is 6.99, with a world rank of 127th of 169 and regional rank of 27th of 35, indicating relatively limited direct services. CMA CGM has an office in Reykjavik, and the local carrier Eimskip is headquartered here, giving shippers structured options for both FCL and LCL routing. Exports such as aluminum, fish and iron alloys, and imports including refined petroleum, cars, carbon-based electronics and aluminum oxide commonly move in containers by sea.

Air freight in Iceland is supported by 8 airports with scheduled services, including Keflavik International Airport, Akureyri International Airport, Egilsstadir Airport, Grimsey Airport and Hornafjordur Airport. The wider network covers about 82 airports across the country.

Air cargo volume is about 192 million tonne-km per year, ranking 51st of 184 worldwide and 19th of 49 in Europe & Central Asia. This mode suits high-value or time-sensitive exports such as orthopedic appliances and certain fish products, and imports like computers and carbon-based electronics. With short average export and import times of about 1 day for border procedures, air freight can support reliable express and consolidation services into and out of Iceland.

Rail and road freight in Iceland support distribution between ports, airports and population centers. Several ports such as Reykjavik, Seydhisfjordhur and Vestmannaeyjar have rail connections inside the port areas, while Grundartangi and Dalvik are served without rail at the pier.

Goods entering by sea through the network of about 43 ports or by air through 8 scheduled-service airports are then moved inland by road. The coastline of about 4,970 km and dispersed settlements make coastal access and road links important for final delivery, especially for exports like fish and aluminum and imports such as refined petroleum and cars.

Customs clearance in Iceland benefits from membership in the World Customs Organization since 1971 and participation in the WTO. The country is also part of the OECD. The average applied tariff is about 1.63 percent, supporting relatively open trade.

Logistics Performance Index customs is 3.7, above the world median of 2.6, while overall LPI is 3.6 versus 2.7. Time to export and import is about 1 day for border compliance. For smooth processing, shippers should at least provide a commercial invoice, packing list and transport document when working with customs in Iceland.