TAKEAWAYS
CURBING CYBERSECURITY THREATS
FAST SHIPPING RESHAPES ECOMMERCE Consumer expectations for rapid delivery are reshaping merchant strategies. The past five years have seen a 47% increase in merchants offering two-day shipping, finds the 2024 Need for Speed report commissioned by UPS Capital. This surge is largely attributed to industry giants like Amazon setting high standards, compelling smaller • Next-day shipping has increased by 58% . • Same-day shipping has surged by 164% . • Over half of consumers are willing to pay extra for faster delivery, especially for health and wellness items, electronics, and apparel. RISING COSTS FOR MERCHANTS • 84% of merchants report increased operational expenses due to expedited shipping demands. • 37% of merchants spend more than $100,000 annually on faster delivery services. • Managing shipping claims for lost, stolen, or damaged packages remains a major challenge for 35% of merchants. NEW SOLUTIONS TO MEET DEMAND • 82% of consumers are open to alternative delivery locations. • Adopting AI-driven tools helps predict the likelihood of successful deliveries and mitigate risks. While this push for faster delivery presents challenges, it also offers opportunities for merchants to differentiate themselves in a competitive market. By adopting strategic approaches and innovative technologies, retailers can meet consumer demands for speed while managing costs and maintaining customer satisfaction. retailers to adapt to remain competitive. Here are some key findings from the report: DEMAND FOR FASTER SHIPPING CONTINUES TO GROW AI and machine learning in cyber threats: Cybercriminals will leverage AI-powered tools to automate attacks, craft convincing scams, and exploit vulnerabilities at unprecedented speeds. Zero-trust security adoption: More fleets will implement Zero-Trust Architecture, ensuring that no device or user is automatically trusted, reducing the risk of unauthorized access. Cyber-enabled cargo theft: Organized crime groups are increasingly using cyber tactics to hijack shipments and manipulate logistics networks, contributing to a 14% rise in cargo theft in 2024, totaling losses of more than $39 million. IoT and asset vulnerabilities: With growing reliance on connected devices in trucks and warehouses, securing IoT infrastructure is becoming a critical priority. “The industry is shifting in ways that demand immediate attention,” warns Joe Ohr, COO of NMFTA. “As cyber threats evolve, trucking companies must invest in stronger detection tools, employee cybersecurity training, and advanced risk mitigation strategies to safeguard their operations.”
As the trucking industry embraces digital transformation, cybersecurity is emerging as one of its most urgent challenges. The key risks fleets will face in the coming year are outlined in the 2025 Trucking Cybersecurity Trends Report , published by the National Motor Freight Traffic Association (NMFTA). With contributions from analysts at Forrester and Gartner, the report identifies phishing, AI-driven cyber threats, zero-trust security adoption, cyber-enabled cargo theft, and IoT vulnerabilities as the most pressing concerns. Key Cybersecurity Trends for 2025 Advanced phishing attacks: AI-enhanced phishing schemes will become more sophisticated, making traditional detection tools less effective. Techniques like delayed phishing will bypass security filters, requiring fleets to adopt advanced email security measures and employee training. THE RACE TO DIGITIZE Digital transformation is shaping the future of logistics, with companies prioritizing different areas to enhance efficiency and visibility across their supply chains. A recent Inbound Logistics online poll highlights where industry professionals are focusing their digitization efforts for 2025. Supply chain visibility emerged as the top priority , with 36% of respondents emphasizing the need for greater transparency and real-time tracking. This reflects a growing trend where businesses seek to mitigate disruptions, improve forecasting, and enhance customer satisfaction through digital tools. Warehouse operations (32%) and inventory control (19%) also ranked high , showcasing the increasing need for automation, AI-driven management, and IoT-enabled tracking to optimize efficiency. Transportation management (14%) remains an area of focus, as companies work to integrate digital freight solutions and route optimization technology.
Which area of logistics are you prioritizing for digital transformation in 2025? Supply chain visibility 36%
19% 32% 14%
Warehouse operations
Inventory control
Transportation management
Source: Inbound Logistics reader poll
16 Inbound Logistics • February 2025
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