Why cyber resilience should be a top priority for freight forwarders

Freight forwarders are at the heart of global trade, facilitating the seamless movement of goods across borders. However, the industry faces significant challenges due to its global nature, including economic uncertainty, volatile carrier rates and a fragmented landscape dominated by small, low-margin businesses.

In recent years, the sector has undergone a major transformation, driven by the rapid adoption of digital technologies such as electronic transport documents, cloud computing, the Internet of Things (IoT) and AI. These innovations have enhanced efficiency, automation and revenue opportunities by replacing cumbersome paper-based processes with digital solutions. Additionally, they have enabled traditional freight forwarders to modernize, shifting from manual workflows to automated systems that improve end-to-end control and data sharing.

However, this digital shift also brings increased cybersecurity risks. Threats such as data breaches, ransomware attacks and supply chain disruptions pose serious challenges. If left unaddressed, these risks could undermine digitalization efforts, forcing businesses to revert to outdated, inefficient methods that disrupt global trade. As a result, cybersecurity has become a top priority for the industry, ensuring that digital transformation efforts remain sustainable and secure.

The ransomware attack on JAS Worldwide in August 2024 highlighted the potentially severe impact of cyberattacks on global freight forwarders for global supply chains. The outage of JAS’s central operations system and its customer portal left clients unable to track shipments in real time, creating logistical challenges globally. Although local contingencies helped mitigate some disruptions, the incident underscores the vulnerability of digitalized freight operations and the need for robust cybersecurity measures to prevent widespread operational and financial fallout.

According to IBM research, a single data breach in the transport sector costs an average of $4.18 million. For the many small and medium freight forwarders, the consequences can be devastating: 60% of small companies go out of business within six months of a cyberattack. A striking example is KNP Logistics Group, one of the UK’s leading privately owned logistics and freight forwarding companies, which declared insolvency in 2023 following a ransomware attack that compromised key systems and financial information. The attack ultimately led to bankruptcy and the layoff of all its employees.

Such incidents underscore the urgency for coordinated action, and global organizations like FIATA (International Federation of Freight Forwarders Associations) are stepping up to provide sector-specific support and strategic guidance.

Freight forwarders operate within a deeply interconnected supply chain, relying on partnerships with shippers, carriers, brokers and technology providers. This interconnectivity creates ecosystem cyber risks, as a single breach at a freight forwarder can ripple across entire logistics networks. To obtain access to systems and cause disruptions, cyber adversaries target the weakest links of a supply chain, commonly small and medium-sized freight forwarders. Many of those small and medium-sized enterprises struggle with outdated systems, limited awareness, and challenges in attracting cybersecurity talent due to budget constraints. This challenge is particularly acute in regions where cybersecurity maturity is low, making these actors more vulnerable.

FIATA promotes targeted guidance and capacity-building efforts across diverse regional contexts and equips regional actors with tailored tools and knowledge.

FIATA offers practical guidance and is investing in digital identity and blockchain to secure negotiable transport documents, such as the FIATA electronic Bill of Lading (eFBL), to safeguarding data integrity.

The World Economic Forum’s Global Cybersecurity Outlook Report 2025 underscores this growing concern, revealing that 35% of small organizations believe their cyber resilience is inadequate, a proportion that has increased sevenfold since 2022.

As digitalization transforms the sector, prioritizing cyber resilience is critical. This involves implementing key security measures, including robust access controls, regular software updates and investment in multi-factor authentication and endpoint protection. Beyond these preventive steps, freight forwarders must also establish a comprehensive incident response plan and conduct regular security audits to proactively identify and address vulnerabilities.

Equally important is cultivating a cybersecurity-aware culture through continuous training. Ongoing education helps reinforce best practices and strengthens the organization's defences. Resources like the Cybersecurity Learning Hub offer valuable training modules on cyber hygiene.

Given that freight forwarders are integral to a highly interconnected transport and supply chain ecosystem, individual actions alone are insufficient. A collaborative approach – uniting freight forwarders, transportation players, brokers, technology providers, suppliers, industry associations, regulators, and brokers – will be critical in mitigating cyber risks.

Establishing threat intelligence networks and fostering cybersecurity partnerships can enhance collective resilience, ensuring that the industry stays ahead of emerging threats.

Recognizing the urgency for a united response, the Forum kicked off the Cyber Resilience in Transport and Supply Chain Ecosystems. The initiative brings together key public and private stakeholders to develop a support model that enables major players to support key and niche players in the ecosystem, ultimately boosting cyber resilience across the industry. As part of this effort, the Forum has been closely collaborating and will continue to collaborate with FIATA to raise awareness and share insights on building cyber resilience within the sector.