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Clarification: It looks like France and Portugal are supply/fuel sources for Republic/Nationalists respectively. Correct?

Historically, Blum's government in France was friendly (but not Allied) with the Republic, and of course the Salazar regime was quite friendly to Franco. During the war all kinds of material came over the Portuguese border, after offload in Lisbon.

Does supply trace overland from these sources happen in-game?

If not, you can certainly pick-up supplies/fuel in those countries and ship

The main supply sources are Germany, Italy, and the USSR. The Nationalists also have off of the map colonies in Afrika that they can access by ships. There are "supply convoys" that automatically show up at certain times and at certain ports. I know of no supply coming from France and/or Portugal.