We have just returned from a similar trip (Td5 double cab 2 kids 12 and 14), taking the same ferry route. The journey from Bilboa to Algerciras took 14 hours with 2 very short stops . We went straight through Madrid with no problems at about lunchtime. It is a very long drive. I recommend a hotel in Algeciras (Hotel Riana Christina) about 50 Euros per room and it is adjacent to the port. Do not buy ferry tickets from touts en-route but do it at the port. The fastcraft to Tangiers takes 45 mins and cost 250 Euro return. Tangier port is a nightmare, you will need patience, as you cannot circumnavigate the process (you do not need fixers) all the paperwork happens at the exit gate, just wait your turn (it took us 4 hours). We took the moterway all the way to Cassablanca and stayed at the Ibis (there is an Ibis Hotel on the Marrakech turnoff). The road from Tangier to Marrakech is now all motorway and very good with modern services. WATCH YOUR SPEED ) around Rabat and the fast changing traffic lights (we got fined 40 Euro).
We went to Marrakech (4 nights) then across the Atlas to Foum Ziguid then took pistes north through Mahmid to Erg Chebbi (5 nights), before returning to Tangier and home. Brilliant drive and we were accompanied by a VW van which we towed through the sand. No problems. The locals everywhere were delightful (security was never an issue). We wild camped away from villages and met a few nomads (all great). Fuel was easy to come buy (cash only ((there is a cashpoint just outside the gates of Tangier Port)). We took bottled water and out water purification tablets.
The main roads are patrolled by a breakdown service and as far as other precautions we just had medical insurance etc. I can honestly say that Morocco was great and never once did we feel worried. We travelled extensively through Southern Africa this summer and yes here there were very definitely security issues. I' am not sure about traveling with very young kids as there is a lot of driving (3500 miles return to Portsmouth).
One last thing the P&O ferry broke down thus adding an extra day to our journey. This ship is a dump compared with Brittany Ferries. Take an electric kettle and adapter and you can save yourself a fortune on this boat.
Have a great trip
Best wishes Ian
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