By David Fleri Soler, Chair – Logistics Business Section, The Malta Chamber
Global trade tensions continue to ripple across economies, redrawing long-standing trade routes and altering the rhythms of global logistics. Continued uncertainty of U.S.-imposed tariffs remains a central theme, with restrictions targeting various industries. For Malta, these shifts are not theoretical—they are measurable, tangible, and deeply consequential for the health of our logistics sector and the wider economy.
The latest figures by the National Statistics Office for February 2025, released on the 9th of April, offer a revealing snapshot of the pressures we face.
Malta registered a trade deficit of €183.5 million, reflecting a €142.1 million decrease in imports and a €127.2 million decrease in exports compared to February 2024.*
While some may view this shrinking trade deficit as positive, the underlying story is more complex. This contraction is not due to increased self-sufficiency, but rather to weakened trade flows—an alarming sign for a small, open economy so dependent on the seamless movement of goods.
In the first two months of 2025, imports from the European Union accounted for €662.8 million, making up 55% of total imports. However, country-specific data suggests a shift in commercial patterns.
The NSO report shows that the most significant increase in imports came from Saudi Arabia, while the sharpest decrease in imports was from Spain. On the export side, shipments to Turkey rose, while exports to the United States plummeted, continuing a concerning downward trend in transatlantic trade.
These figures cannot be viewed in isolation. They are symptomatic of broader disruptions: renewed tariffs between global powers, instability in shipping lanes such as the Red Sea, and rising operational costs linked to new EU environmental regulations like the Emissions Trading System (ETS). Each of these pressures converges on Malta’s logistics operators, who must absorb volatility and deliver continuity in uncertain conditions.
Faced with these realities, Malta must respond with strategic intent.
First, diversifying trade partners is no longer optional. The increase in exports to Turkey is encouraging and should serve as a blueprint for expanding our footprint in emerging markets in North Africa, the Balkans, and the Middle East.
At the same time, investing in logistics infrastructure—from incoming distribution centres, cold chain storage, port handling facilities, reforming port regulations to increasing Freezone areas for specialised niches — will enhance our competitiveness and buffer against future shocks.
Second, engagement at the EU level is vital. Malta’s unique geographic realities as an island state must be better recognised in policies like the ETS. The extension of ETS has already led to higher freight rates, with the cost of transporting a single container and trailer between Malta and Italy increasing by up to €180.
The cost of this to Ro-Ro operations between Italy and Malta has already impacted our importers and exporters a bill of over €10 million. A one-size-fits-all approach disproportionately penalises smaller member states. A flexible and fair policy framework is essential for preserving the competitiveness of Maltese logistics and safeguarding our long-term connectivity.
While not all proposed U.S. tariffs have come into effect, the mere anticipation of these measures creates disruption and ambiguity for stakeholders across the supply chain. Lastly, we must focus on skills and innovation. Upskilling our workforce and integrating advanced digital logistics solutions—from real-time tracking to predictive analytics—will ensure resilience and unlock new efficiencies.
Looking ahead, Malta’s position at the crossroads of Europe and North Africa is not only geographic—it is strategic. We must seize this moment to reinforce our strengths and mitigate our vulnerabilities. In an era of fragmentation, a smart, adaptive logistics sector is Malta’s bridge to the world.
*https://nso.gov.mt/international-trade/international-trade-in-goods-february-2025/
David Fleri Soler is Chief Commercial Officer at Express Trailers and Chair of the Logistics Business Section at The Malta Chamber.
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