The State of Globalization; Combatting Cybersecurity Threats; AI for Small Manufacturers; and other Logistics News

Globalization Remains Strong Despite Geopolitical Tensions

Amid ongoing geopolitical uncertainties and the Trump Administration’s push toward an America First foreign policy stance, globalization still holds steady at record levels, according to a recent report from DHL and New York University’s Stern School of Business. The DHL Global Connectedness Tracker, an extension of the DHL Global Connectedness Report, provides a comprehensive analysis of global trade, capital, information, and people flows.

• International trade remains a vital pillar of the world economy, according to the latest findings. These details, shared in the updated DHL Global Connectedness Tracker, make that case:
• In 2023, 21% of the global economic output was traded internationally—just shy of the all-time high of 22%.
• Contrary to expectations of regionalization, traded goods are traveling the longest average distance on record (3,088 miles), indicating that globalization remains robust.
• Geopolitically “unaligned” countries, such as India, Vietnam, Brazil, and the UAE, are taking on changing roles. These nations have expanded their share of global trade, serving as economic bridges between geopolitical rivals like the U.S. and China. From 2016 to 2024, trade involving these neutral economies grew from 42% to 47%.
• Information flows continue to be the most globalized aspect of international activity, driven by rapid digitization. Migration and travel remain at lower globalization levels.

The report also cautions against predictions of a globalization reversal due to potential new U.S. tariffs, emphasizing global trade’s proven resilience through Brexit, the U.S.-China trade war, and the pandemic.

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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 retailers to adapt to remain competitive.

Here are some key findings from the report:

Demand for Faster Shipping Continues to Grow

• 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.

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Snapshot: Supply Chain Mood

In the midst of complex shifts occurring within the global trade sphere, supply chain executives feel torn between optimism and pessimism, shows the fifth annual Trade in Transition research program. Led by Economist Impact and supported by DP World, the survey of more than 3,500 supply chain leaders examines how firms are adapting to forces shaping global supply chains. Among other findings, the research reveals the top five reasons for both pessimistic and optimistic outlooks—a quick microcosm of the many elements impacting shippers today. These are the most-cited mood factors:

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Small Manufacturers, Big AI Rewards

One common misconception is that only large businesses can take advantage of artificial intelligence initiatives. A recent whitepaper from The National Center for Manufacturing Sciences, focusing on how AI can enhance supply chain resilience for small and mid-sized manufacturers (SMMs), helps to dispel that myth.

The paper, Artificial Intelligence to Improve Supply Chain Resilience Throughout American Manufacturing, shares two case studies demonstrating straightforward, cost-effective AI solutions—including advanced sensing, blockchain, and machine learning tools—that SMMs can adapt to prevent supply chain disruptions. These solutions helped the two SMMs recognize the advantages of utilizing operational and product data to fuel AI models, leading to scalable solutions for common manufacturing challenges.

The whitepaper also identifies two key challenges impeding AI adoption in manufacturing:

1. Data privacy preservation: Ensuring that AI implementation does not compromise sensitive information.

2. Secure data sharing: Developing standardized methods for selective and secure data exchange among organizations.

Underscoring the need for expanding public-private partnerships to accelerate AI adoption for supply chain resilience, the paper also highlights recent federal AI initiatives, including advancements from the Department of Commerce’s Supply Chain Center and AI standards developed by the National Institute of Standards and Technology.

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Curbing Cybersecurity Threats

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.

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.”

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What’s Holding Back AI Adoption?

Though it seems you can’t go more than a few minutes without hearing about AI these days, the game-changing technology still faces critical barriers when it comes to widespread business adoption. Factors including lack of trust, lack of skills, and data governance challenges are hampering AI projects, finds a new survey from data analytics firm Qlik. Here are the highlights of the report, which surveyed 4,200 C-suite executives and AI decision makers:

AI is crucial but underutilized:

• 88% of global decision-makers agree AI is essential for success, yet 61% of businesses are scaling back investment due to trust issues.
• 11% have more than 50 AI projects stuck in planning; 20% have paused or canceled up to 50 projects.

Barriers to AI progress:

• Skills gap: 23% cite a lack of development skills; 22% struggle with deployment.
• Data challenges: 23% face governance issues; 21% lack trusted data.
• Budget limitations and internal/external trust issues also hinder progress.

Trust deficit impacts adoption:

• 37% say senior managers lack AI trust; 42% cite skepticism from other employees.
• 21% believe customers distrust AI.

The research also reveals some solutions to unlock AI potential, including prebuilt AI tools (74% see “ready-made” solutions as a practical starting point), workforce training (76% urge industries to upskill employees for AI roles), and building trust through knowledge-sharing across stakeholders.

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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.

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