LONDON, February 24, 2025 — The global transportation and logistics industry is having to adapt to a fast-moving landscape of regulations, trade tensions and political instability that threatens future supply chain disruption.
Yet, despite headwinds, the sector is taking a positive approach and looking to capitalize on the opportunities that change can bring, focusing on expansion and investment, and looking to develop solutions to big challenges such as climate change. That’s according to the latest Global Transportation and Logistics Risk Report, by Willis, a WTW business.
A majority (57%) of those surveyed ranked infrastructure investments among the sector’s biggest business opportunities for the next two years. As well as general investment in improving rail, ports and airports, this may reflect a drive to build out the facilities and technologies needed for the transition to clean energy.
Yet, new regulations, particularly in environmental and cyber security areas, are adding complexity and costs to operations, emerging as the top risk (53%).
Technology is proving to be critical to managing risks and improving service efficiency, as more than half of executives (55%) look to invest in technology as a strategy. Real-time end-to-end tracking of assets and cargoes can enhance transparency and response times, while advanced technologies can improve weather forecasting, reduce errors, and strengthen cybersecurity controls. These technological advancements are essential for building a more resilient and efficient transportation and logistics sector.
“It will be paramount for companies to keep on top of fast-changing cyber threats, as well as being able to demonstrate that they are on a path to climate resilience and sustainability.”
Garret Gaughan | Global Head of Direct & Facultative at Willis
Additionally, sustainability is a major focus for the industry, 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.
“It will be paramount for companies to keep on top of fast-changing cyber threats, as well as being able to demonstrate that they are on a path to climate resilience and sustainability. These are no longer ‘nice to have’, but business necessities.”
Respondents include 400 senior decision makers in air, road, rail, logistics and support services, and specialized services such as charters and tour companies, across Europe, North America, Asia-Pacific and Latin America.
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