At the beginning of the 12th century the term "Hanse League " was first used to identify confederations of German merchants abroad. In some types of trade they enjoyed certain trading privileges. The first privilege of this kind was bestowed upon merchants from Cologne in 1157 in London.

As a result of this, in order to defend their common interests an organised system of safe conduct was set up in particular on transport routes both on land and at sea, for the purpose of, amongst others, protection against robbers and pirates both on the North and Baltic Seas as well as in the participating towns.

After the re-founding of Lübeck by Henry, the Lion the town developed in the course of the following 1250 years into the most important centre of the Hanseatic League and after its merger with Hamburg during the first half of the 13th century gained control over the trading routes between the Baltic and the North Sea. In this way it was able to secure a strong position in the North European trading activities for itself.

In 1252 German merchants received trading privileges in Flanders. Bruges became the Kontor for foreign trade. In 1266 Lübeck and Hamburg were granted the right to operate trading Kontors in London, just like Cologne before them.

In 1281 the towns of Lübeck, Riga and Visby signed a mutual treaty for protection in the Baltic area.

Various other North German towns such as Bremen, Danzig, Rostock and Wismar – attracted by the growing influence and wealth – joined the confederation one after the other until finally, in 1356, at the first "Hansetag", the Hanseatic Diet, in Lübeck, the individual members of the Hanse united in an official league.

Between the 13th and 16th century the Hanse dominated the whole of trading in northern Europe.