By Dr. Shereen Nassar, Global Director of Logistics Studies and Director of MSC Logistics and Supply Chain Management Suite at Heriot-Watt University Dubai
In today’s global economy, supply chains have grown into vast, complex ecosystems that transcend borders, industries, and digital infrastructures. While natural disasters, political instability, and material shortages remain traditional threats, there is now a more insidious and rapidly growing danger of cybersecurity risk as one of the top priority risks. According to Global Cybersecurity Outlook 2025¹, a complex cyberspace characterised by geopolitical uncertainties, widening cyber inequity and sophisticated cyberthreats, leaders must adopt a security-first mindset
The digital transformation of logistics from warehouse automation to transportation management systems has significantly enhanced efficiency. However, it has also created numerous cyber vulnerabilities that can impact a company’s operations and the entire supply chain it depends on. Businesses must treat cybersecurity not as a separate IT function but as an integral part of their overall supply chain risk mitigation strategy.
The new face of supply chain disruption
Historically, risk mitigation in supply chains focused on physical disruptions, port delays, factory shutdowns, or labour strikes. Today, a ransomware attack on a single logistics provider or freight forwarder can paralyse operations across multiple continents. A compromised email at a customs broker’s office or software vulnerability in a route optimisation system can lead to data theft, financial loss, and delivery delays. One prominent example is the 2017 NotPetya cyberattack, which disrupted Maersk, one of the world’s largest shipping companies. The attack originated through Ukrainian accounting software used by a partner company. As a result, Maersk had to reinstall thousands of servers and computers, with damages estimated at USD 300 million. This incident exposed how digital risks in logistics are not just technical, but are
strategic threats.
Supply chains are increasingly digital, interconnected, and reliant on third-party service providers, making them prime targets for cybercriminals. Logistics firms often share sensitive data with carriers, customs authorities, suppliers, and software vendors. Each connection presents a potential entry point for attackers. Moreover, smaller third-party logistics providers (3PLs) or subcontractors may lack the cybersecurity resources of large corporations. Attackers exploit these weaker links to access the larger network. The decentralised nature of modern logistics, while efficient, amplifies this exposure. It was reported that 71 per cent of cyber leaders at the Annual Meeting on Cybersecurity 2024 believe that small organisations have already reached a critical sloping point where they can no longer adequately secure themselves against the growing complexity of cyber risks.
As an essential part of the global economy, the logistics sector is susceptible to numerous cybersecurity threats. Credential-stealing phishing attacks through deceptive messages can undermine phishing systems and operational processes. Ransomware disables important logistics functions through data encryption, leading to significant financial costs and reputational loss. Deliberate and unintentional insider threats incur risks of data breaches via misuse of access rights. Supply chain attacks focus on gaps or weaknesses in the transportation and distribution system to facilitate product modification or alteration, as well as delays in services. These threats amplified by the sector’s interconnectivity—demand proactive measures.
To effectively counter modern cybersecurity threats, businesses must broaden their understanding of logistics risk to include digital vulnerabilities and adopt a comprehensive, integrated mitigation strategy. Digital risk mapping is the starting point where firms pinpoint all digital interfaces and evaluate which stakeholders may have critical system and data access. In addition, vendor risk assessment focuses on some third-party providers like freight forwarders, warehouse personnel, and customs brokers who have data access or system integration and evaluates their cyber security policies. Secure procurement policies are just as important, embedding security criteria in supplier choice, demanding pertinent certifications, and including breach and data protection specific clauses in contracts.
To improve resilience, companies must secure redundancy and devise business continuity strategies to guarantee operation during cyber interruptions. Since human error is a common vulnerability, training employees and partners is important for fostering responsibility at all levels. Comprehensive monitoring within and beyond organisational boundaries enables early detection of threats while integration of real time alerts into logistics platforms can permit proactive incident management. Lastly, enabling smaller vendors to participate through shared tool, framework, or subsidised protection models of Cybersecurity-as-a-Service, reinforces each link in the network, thereby fortifying the entire supply chain’s digital security.
As one of the world’s leading courier delivery service companies, FedEx has put strong cybersecurity protocols in place to protect its global logistics network. FedEx uses sophisticated encryption technology to protect sensitive information during transmission as well as while stored. Moreover, FedEx uses advanced network surveillance, intrusion detection systems, and other real-time threat detection technologies to neutralise FedEx network risks. FedEx has succeeded with cybersecurity due to the combination of modern technology, regular security assessments, and an active stance on risk intelligence. It places the highest emphasis upon training of operational staff on cybersecurity protocols, coupled with a pronounced culture of vigilance.
From operational risk to competitive advantage
Issues concerning cybersecurity in logistics have evolved from a simple compliance concern to a more sophisticated competitive factor. Companies embedding digital resilience into their supply chain frameworks are positioned to better sustain operations, enhance recovery speed, and forge more robust relationships with stakeholders. This also serves as a signal to investors, customers, and regulators that the business actively mitigates and adapts to evolving risks.
Cyber threats are now as much a part of supply chain management as inventory planning or transportation routing.
Logistics professionals must embrace cybersecurity as a core element of risk mitigation. The integrity of the global supply chain depends on physical assets and the strength of its digital infrastructure. To secure the future, businesses must ensure the links that connect them.
Sources: ¹Global Cybersecurity Report 2025, World Economic Forum Insight Report January 2025, World Economic Forum (www.weforum.org)
About the author
Dr Shereen Nassar
Global Director of Logistics Studies · Heriot-Watt University Dubai