The pace of the international supply chain showed no signs of slowing in 2024 — in fact, the global freight and logistics market is forecast to be worth $18.69 billion by 2026. It was another year of considerable disruption in many different forms, from increasingly sophisticated cargo theft to evolving geopolitical situations, and frequent instances of extreme weather. 

But how did the industry respond, and what can businesses do to manage risk, minimise loss and bolster their resilience in the year ahead? Keep reading for my predictions on the key supply chain trends we’re likely to encounter in 2025.

1. Renewed focus on cost-efficiency.

The ongoing cost of living crisis has become a global issue, and while it looks different in every country, businesses around the world are attempting to counter high inflation by cutting costs in an effort to stabilize their bottom lines. In transport and logistics, we’re likely to see SMEs ramping up measures like load consolidation and route optimization (e.g. to reduce deadhead miles), and I hope we’ll also see fewer loads being stored and shipped without the right coverage. 

Taking out a policy that’s designed to cover the actual value of the load, as well as the specific risks applicable, is one of the best steps supply chain businesses can take to insulate themselves from loss. With data-priced policies available through providers like us, the upfront cost of the insurance is undoubtedly worthwhile.

2. Enhanced visibility of the supply chain, through data & AI.

Over the last few years, AI tools have slowly but steadily infiltrated business workflows. Today, these tools are seamlessly optimizing any number of processes within the supply chain. Through historic and predictive data, AI can forecast fluctuations in capacity and raw materials, enabling businesses to adjust their procurement strategies accordingly. 

You can map the shipping routes that pose the lowest risk, and even minimize the chance of cargo damage in transit through AI-modeled loading configurations. It’s a core part of our Holistic Freight Protection offering too; we collaborate with a number of innovative data partners to deliver actionable insights that predict and prevent loss for our assureds.

3. Increased commitment to sustainability.

The impacts of climate change are only getting more evident, with extreme weather events like Hurricane Milton causing huge financial losses. The European Environment Agency has predicted that global logistics will cause 40% of global carbon emissions by 2040 — and sustainability has gone from a compliance tickbox to a central component of business strategy. 

In 2025, I expect businesses to further prioritize the reduction of environmental impact, embracing alternative fuels, investing in low and no-emission vehicles, and taking steps to cut last-mile emissions too.

4. Continued navigation of geopolitical events.

2024 was a year of considerable political upheaval. As well as several key elections in the west, we saw the continuation of the war in Ukraine, and the escalation of the conflict in Gaza. As America waits for Trump’s inauguration, countries across the globe wait to hear confirmation of the import tariffs he promised on the campaign trail — including a special rate of 60% on all imports from China.

The economic impact of these geopolitical events can’t be understated — from boycotts and trade sanctions to changing tariffs, there’s so much for supply chain businesses to navigate. Agility is crucial to survival in such a tumultuous landscape, and the businesses equipped to adapt to evolving market conditions, comply with new regulations, or meet unexpected customer demands will fare best.

As we welcome a new year, we urge supply chain businesses to harness emerging technologies that are improving agility and resilience, and join us at the new frontier of risk management: Holistic Freight Protection. 

Our 360-degree risk management solution starts at the source, with the prediction and prevention of loss through data insights. Through our dynamic pricing model, we then deliver data-priced insurance products for almost every risk, including shipper’s interest, stock throughput and motor truck cargo insurance. Lastly, we ensure that when unavoidable loss does occur, recouping that loss is quick and painless, thanks to our transparent automated claims process. 

To find out more about Holistic Freight Protection or ask about any of our products, fill out the form below and a member of our team will be in touch.