The global transport and logistics industry is adapting to a fast-moving landscape of regulations, trade tensions and political instability that could lead to future supply chain disruption.
However, despite these headwinds, the sector is capitalising on opportunities change can bring, focusing on expansion and investment, and looking to develop solutions to challenges such as climate change.
These are among the findings of the latest Global Transportation and Logistics Risk Report released on Tuesday by Willis, a business belonging to the British-American multinational that provides commercial insurance brokerage and strategic risk management services.
The survey's respondents included 400 senior decision makers in air, road, rail, logistics and support services, and specialised services such as charters and tour companies across Europe, North America, Asia-Pacific, and Latin America.
The majority (57%) of leaders surveyed ranked infrastructure investments among the sector’s biggest business opportunities over the next two years. Along with general investment in improving rail, ports and airports, the report noted that this could reflect a collective drive to construct facilities and technologies needed for the transition to clean energy.
Some 50% of those surveyed ranked global trade expansion as a key opportunity over the next two years, with 44% saying they plan to expand into new markets.
Enhancing the customer experience through advanced technologies and personalised services was a critical focus for many firms, and 44% ranked customer experience as a leading opportunity.
Regarding risks, 53% of leaders said the top risk facing the sector was new regulations, particularly regarding the environment and cybersecurity, as these add complexity and costs to operations.
A total of 47% also ranked business interruption as a top risk, as heightened global instability and conflict, as well as disruptions caused by natural disasters and operational failures, pose risks that can lead to significant delays and loss of customer trust.
In addition, 37% of executives ranked supply chain disruption as a top risk, fuelled by tariff wars and trade tensions, weather events and supplier delays across multiple geographies and industries.
Cybersecurity was ranked by 34% as a top risk because criminals may think logistics companies are more likely to pay to end a ransomware attack, making the industry an attractive target.
Sustainability was also cited as a major focus, with 61% of respondents citing it as their biggest environmental risk.
The transportation sector, which accounts for approximately a quarter of global greenhouse gas emissions, is under pressure to reduce its carbon footprint. This is likely to continue globally, despite a rollback of climate targets in some countries.
Garret Gaughan, global head of direct & facultative at Willis, said the transportation and logistics industry “stands at a crossroads in 2025, with the potential to drive significant positive change”.
“By leveraging technology, addressing sustainability goals, and navigating regulatory and economic challenges, companies can position themselves for success in a rapidly evolving market,” Gaughan said.
“It will be paramount for companies to keep on top of fast-changing cyber threats, as well as be able to demonstrate that they are on a path to climate resilience and sustainability. These are no longer nice to have, but business necessities.
