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Convoy management is totally absent.

Germany seized Spain, and thus inherited as well Spanish Marocco.

Then the problem is that Italy also took the whole of French North Afrika.

The AI gets Germany to send a supply convoy to Tangiers across the -Atlantic-. It is unknown the point of departure, if Kiel or a French or Spanish / Portugal port... but considering the amount of troops present there, they could either:

A: Supplied through Algiers for instance.
B: The convoy pathing could arrive to Marseille or even just Malaga via rail, and hop from there to Tangiers.

Instead on each and every other turn the Brits can get free shots to German convoys, simply because it cannot be decided if to issue a convoy or not.

According to the interface, Italy is shipping supplies to Rhodes too - which is actually empty.

The only way I had to realize of that is that I get a report of convoy losses...

Not sure if I understand you completely. You do see the convoy lanes on the map. Those are where convoys are escorted and can be attacked directly by subs and surface raiders. Then also supply goes to ports, which can be interdicted by ships and air forces in range.

Example, if you had Gibraltar-based naval bombers, or naval forces, they would attempt to take down supply going to German ports that were taken from Spain, in Morocco.

Supply interdiction isn't subject to convoy routes. It is just based on port distance to the air or fleet. It might hit supply but it takes a massive fleet to really deplete it to zero.