Global Transportation And Logistics Risk Report 2024/2025

How the industry views its emerging risks and challenges.

Our global survey reveals how industry leaders navigate risks and opportunities in transportation and logistics, manage emerging risks, and prepare for the future.

Navigating a new world of complexity

Keeping the world's goods and passengers moving demands a high degree of resilience -- and an ability to navigate a path through complexity and turbulence. As we move towards the second quarter of the 21st century, those attributes are being severely tested. New disruption risks are clouding the horizon just as the sector is under pressure to accelerate reductions in global emissions and deliver transparency throughout the supply chain.

About the survey

When: June-July 2024

Who: 400 global senior decision makers, including owners, CEOs and directors and managers of risk, finance, operations, human resources and marketing. Where: Countries across Europe, North America, Asia-Pacific and Latin America. Segment: Air, maritime, road, rail, logistics and support services, and specialized services such as charters and tour companies.

Size: 40% of companies valued US£1 billion or more; 40% US£500 million - US£1 billion;20% US£250 million - US£500 million. In our first global transportation and logistics survey, we asked 400 senior industry decision-makers how they are adapting to this fast-moving landscape. What are their main risks and opportunities?

How are they managing emerging risks, and how are they preparing their businesses for the future?

Key findings

Infrastructure is top opportunity

57% ranked infrastructure investments among their biggest opportunities for the next two years as the sector looks to grow and meet pressing challenges such as the energy transition. Regulation is biggest risk factor

53% said regulation was among the greatest risks to success, reflecting concerns about the increasing burden of red tape on the sector from cyber security to environmental protection. Trade tensions are a growing concern

68% named trade disputes among their top supply chain risks, while 62% put it among their greatest geopolitical risks,reflecting fears over potential new tariffs and regulatory restrictions. Technology is key to managing risks

55% said investment in technology was a very important strategy for managing and mitigating risks, including systems that can track transport assets and cargoes and deliver data in real time. Firms feel the pressure on sustainability

61% said sustainability strategy was their biggest environmental risk, as firms face growing pressure to decarbonize and sustainability credentials become a pre-requisite for many lenders.

What challenges and opportunities lie ahead?

Our survey findings reveal executives are most concerned about the proliferation of new regulations and the trade tensions and political instability that could contribute to future supply chain disruption. Despite this, many are taking a positive approach, making investments in the infrastructure and technologies that can help them decarbonize and make the most of any growth in global trade. Businesses also see investing in technology as the number one strategy to help them mitigate their risks.

The content of this article is intended to provide a general guide to the subject matter.

Specialist advice should be sought about your specific circumstances.