Put another way, only 6% of Fortune 500 companies scored an A for their cybersecurity efforts, as companies worldwide hustle to defend against threats caused by the increasing sophistication of cyberattacks, coupled with the expanding attack surface due to cloud adoption, remote work, and complex supply chains.
That assessment comes from a Cybernews Business Digital Index report from the Vilnius, Lithuania-based group, which evaluated risk across seven key areas: software patching, web application security, email security, system reputation, SSL Configuration, system hosting, and data breach history.
Despite those poor results, the category of transportation and logistics companies had the highest share of A-level companies (20%). That was following by technology and IT (18%), healthcare and pharmaceuticals (10%), and construction and engineering (9%), the security experts found.
The logistics tech firm incubator Zebox, a unit of supply chain giant CMA CGM Group, plans to show off 10 of its top startup businesses at the annual technology trade show CES in January, the French company said today.
Founded in 2018, Zebox calls itself an international innovation accelerator expert in the fields of maritime industry, logistics & media. The Marseille, France-based unit is supported by major companies in the sector, such as BNSF Railway, Blume Global, Trac Intermodal, Vinci, CEVA Logistics, Transdev and Port of Virginia.
To participate in that program, Zebox said it chose 10 French and American companies that are working to leverage cutting-edge technologies to address major industrial challenges and drive meaningful transformations:
Aerleum: CO2 capture and conversion technology producing cost-competitive synthetic fuels and chemicals, enabling decarbonization in hard-to-electrify sectors such as maritime and aviation. Akidaia (CES Innovation Award Winner 2024): Offline access control system offering robust cybersecurity, easy deployment, and secure operation, even in remote or mobile sites.
BE ENERGY: Innovative clean energy solutions recognized for their groundbreaking impact on sustainable energy.
Biomitech (CES Innovation Award Winner 2025): Air purification system that transforms atmospheric pollution into oxygen and biomass through photosynthesis.
Flying Ship Technologies, Corp,: Building unmanned, autonomous, and eco-friendly ground-effect vessels for efficient cargo delivery to tens of thousands of destinations.
Gazelle: Next-generation chargers made more compact and efficient by advanced technology developed by Wise Integration.
HawAI.tech: Hardware accelerators designed to enhance probabilistic artificial intelligence, promoting energy efficiency and explainability.
Okular Logistics: AI-powered smart cameras and analytics to automate warehouse operations, ensure real-time inventory accuracy, and reduce costs.
OTRERA NEW ENERGY: Compact modular reactor (SMR) harnessing over 50 years of French expertise to provide cost-effective, decarbonized electricity and heat.
Zadar Labs, Inc.: High-resolution imaging radars for surveillance, autonomous systems, and beyond.
Amazon package deliveries are about to get a little bit faster—thanks to specially outfitted delivery vans and the magic of AI.
Last month, the mega-retailer introduced its Vision-Assisted Package Retrieval (VAPR)solution, an AI (artificial intelligence)-powered system designed to cut the time it takes drivers to retrieve packages from the back of the van.
According to Amazon, VAPR kicks in when the van arrives at a delivery location, automatically projecting a green “O” on all packages that will be delivered at that stop and a red “X” on all other packages. Not only does that allow the driver to find the right package in seconds, the company says, but it also eliminates the need to organize packages by stop, read and scan labels, and manually check the customer’s name and address to ensure they have the right parcels. As Amazon puts it, “[Drivers] simply have to look for VAPR’s green light, grab, and go.”
The technology combines artificial intelligence (AI) with Amazon Robotics Identification (AR-ID), a form of computer vision originally developed to help fulfillment centers speed up putaway and picking operations. Linked to the van’s delivery route navigation system, AR-ID replaces the need for manual barcode scanning by using specially designed light projectors and cameras mounted inside the van to locate and decipher multiple barcodes in real time, according to the company.
In field tests, VAPR reduced perceived physical and mental effort for drivers by 67% and saved more than 30 minutes per route, Amazon says. The company now plans to roll out VAPR in 1,000 Amazon electric delivery vans from Rivian by early 2025.
Hackers are beginning to extend their computer attacks to ever-larger organizations in their hunt for greater criminal profits, which could drive an anticipated increase in credit risk and push insurers to charge more for their policies, according to the “2025 Cyber Outlook” from Moody’s Ratings.
In Moody’s forecast, cyber risk will intensify in 2025 as attackers switch tactics in response to better corporate cyber defenses and as advances in artificial intelligence increase the volume and sophistication of their strikes. Meanwhile, the incoming Trump administration will likely scale back cyber defense regulations in the US, while a new UN treaty on cyber crime will strengthen the global fight against this threat, the report said.
“Ransomware perpetrators are now targeting larger organizations in search of higher ransom demands, leading to greater credit impact. This shift is likely to increase the cyber risk for entities rated by Moody's and could lead to increased loss ratios for cyber insurers, impacting premium rates in the U.S.," Leroy Terrelonge, Moody’s Ratings Vice President and author of the Outlook report, said in a statement.
The warning comes just weeks after global supply chain software vendor Blue Yonder was hit by a ransomware attack that snarled many of its customers’ retail, labor, and transportation platforms in the midst of the winter holiday shopping surge.
That successful attack shows that while larger businesses tend to have more advanced cybersecurity defenses, their risk is not necessarily diminished. According to Moody’s, their networks are generally more complex, making it easier to overlook vulnerabilities, and when they have grown in size over time, they are more likely to have older systems that are more difficult to secure.
Another factor fueling the problem is Generative AI, which will will enable attackers to craft personalized, compelling messages that mimic legitimate communications from trusted entities, thus turbocharging the phishing attacks which aim to entice a user into clicking a malicious link.
Complex supply chains further compound the problem, since cybercriminals often find the easiest attack path is through third-party software suppliers that are typically not as well protected as large companies. And by compromising one supplier, they can attack a wide swath of that supplier's customers.
In the face of that rising threat, a new Republican administration will likely soften U.S. cyber regulations, Moody’s said. The administration will likely roll back cybersecurity mandates and potentially curtail the activities of the US Cybersecurity and Infrastructure Security Agency (CISA), thus heightening the risk of cyberattack.
When it comes to logistics technology, the pace of innovation has never been faster. In recent years, the market has been inundated by waves of cool new tech tools, all promising to help users enhance their operations and cope with today’s myriad supply chain challenges.
But that ever-expanding array of offerings can make it difficult to separate the wheat from the chaff—technology that’s the real deal versus technology that’s just “vaporware,” meaning products that don’t live up to their hype and may even still be in the conceptual stage.
One way to cut through the confusion is to check out the entries for the “3 V’s of Supply Chain Innovation Awards,” an annual competition held by the Council of Supply Chain Management Professionals (CSCMP). This competition, which is hosted by DC Velocity’s sister publication, Supply Chain Xchange, and supply chain visionary and 3 V’s framework creator Art Mesher, recognizes companies that have parlayed the 3 V’s—“embracing variability, harnessing visibility, and competing with velocity”—into business success and advanced the practice of supply chain management. Awards are presented in two categories: the “Business Innovation Award,” which recognizes more established businesses, and the “Best Overall Innovative Startup/Early Stage Award,” which recognizes newer companies.
The judging for this year’s competition—the second annual contest—took place at CSCMP’s EDGE Supply Chain Conference & Exhibition in September, where the three finalists for each award presented their innovations via a fast-paced “elevator pitch.” (To watch a video of the presentations, visit the Supply Chain Xchange website.)
What follows is a brief look at the six companies that made the competition’s final round and the latest updates on their achievements:
Arkestro: This San Francisco-based firm offers a predictive procurement orchestration solution that uses machine learning (ML) and behavioral science to revolutionize sourcing, eliminating the need for outdated manual tools like pivot tables and for labor-intensive negotiations. Instead, procurement teams can process quotes and secure optimal supplier agreements at a speed and accuracy that would be impossible to achieve manually, the firm says.
The company recently joined the Amazon Web Services (AWS) Partner Network (APN), which it says will help it reach its goal of elevating procurement from a cost center to a strategic growth engine.
AutoScheduler.AI: This Austin, Texas-based company offers a predictive warehouse optimization platform that integrates with a user’s existing warehouse management system (WMS) and “accelerates” its ability to resolve problems like dock schedule conflicts, inefficient workforce allocation, poor on-time/in-full (OTIF) performance, and excessive intra-campus moves.
“We’re here to make the warehouse sexy,” the firm says on its website. “With our deep background in building machine learning solutions, everything delivered by the AutoScheduler team is designed to provide value by learning your challenges, environment, and best practices.” Privately funded up until this summer, the company recently secured venture capital funding that it will use to accelerate its growth and enhance its technologies.
Davinci Micro Fulfillment: Located in Bound Brook, New Jersey, Davinci operates a “microfulfillment as a service” platform that helps users expedite inventory turnover while reducing operating expenses by leveraging what it calls the “4 Ps of global distribution”—product, placement, price, and promotion. The firm operates a network of microfulfillment centers across the U.S., offering services that include front-end merchandising and network optimization.
Within the past year, the company raised seed funding to help enhance its technology capabilities.
Flying Ship: Headquartered in Leesburg, Virginia, Flying Ship has designed an unmanned, low-flying “ground-effect maritime craft” that moves freight over the ocean in coastal regions. Although the Flying Ship looks like a small aircraft or large drone, it is classified as a maritime vessel because it does not leave the air cushion over the waves, similar to a hovercraft.
The first-generation models are 30 feet long, electrically powered, and semi-autonomous. They can dock at existing marinas, beaches, and boat ramps to deliver goods, providing service that the company describes as faster than boats and cheaper than air. The firm says the next-generation models will be fully autonomous.
Flying Ship, which was honored with the Best Overall Startup Award in this year’s 3 V’s competition, is currently preparing to fly demo missions with the Air Force Research Laboratory (AFRL).
Perfect Planner: Based in Alpharetta, Georgia, Perfect Planner operates a cloud-based platform that’s designed to streamline the material planning and replenishment process. The technology collects, organizes, and analyzes data from a business’s material requirements planning (MRP) system to create daily “to-do lists” for material planners/buyers, with the “to-dos” ranked in order of criticality. The solution also uses advanced analytics to “understand” and address inventory shortages and surpluses.
Perfect Planner was honored with the Business Innovation Award in this year’s 3 V’s competition.
ProvisionAi: Located in Franklin, Tennessee, ProvisionAi has developed load optimization software that helps consumer packaged goods (CPG) companies move their freight with fewer trucks, thereby cutting their transportation costs. The firm says its flagship offering is an automatic order optimization (AutoO2) system that bolts onto a company’s existing enterprise resource planning (ERP) or WMS platform and guides larger orders through execution, ensuring that what is planned is actually loaded on the truck. The firm’s CEO and founder, Tom Moore, was recognized as a 2024 Rainmaker by this magazine.
When it comes to the challenges facing the trucking industry, the standard litany goes something like this: driver turnover, diesel prices … and freight scams.
Freight scams have always been there, of course. Thieves will naturally flock to a sector that handles 80,000-pound loads of merchandise conveniently packed into 18-wheelers that are sometimes left alone in a freight yard for the weekend or parked overnight along a lonely stretch of highway.
But the problem is getting worse, experts say. That’s partly because of the rise of the internet, where thieves can use keystrokes—rather than brute force—to divert freight. It has also opened the door to hackers, who can exploit human error to gain access to sensitive information—information they can then use to cripple a company’s networks or hold its databases for ransom.
Another factor in the upsurge of cargo scams is the increasing technological sophistication of the trucking industry. A few years ago, freight brokers spent their days phoning or emailing contacts they found on loadboards to book truck space—a process that was slow, but secure. Today, nearly anyone can book trucking capacity instantly through a digital freight matching (DFM) platform or smartphone app. While that approach is faster and more efficient, it also leaves users more vulnerable to online scammers.
“The biggest threat to the trucking industry isn’t from roads traveled or soft markets, but from cyberspace,” Joe Ohr, chief operating officer for the National Motor Freight Traffic Association (NMFTA), said in a recent release. “With rapid tech adoption, vulnerabilities are growing,” he added, noting that today, one in four cybersecurity attacks target the transport and distribution industries. “It’s crucial for carriers, shippers, and 3PLs [third-party logistics service providers] to prioritize efficient and effective cybersecurity measures to mitigate these risks,” Ohr said.
According to the NMFTA, companies hit by recent cyberattacks include some of the biggest names in the business: Ward Transport & Logistics Corp., Bison Transport, Estes Express Lines, Forward Air Corp., Marten Transport, the Port of Los Angeles, and the Port of Seattle. The full list is almost certainly longer, but many victims do not disclose the breaches out of fear of damaging their reputations or inviting follow-on attempts.
BUILDING CYBERSHIELDS
With cyberattacks on the rise and billions of dollars at stake, the industry is fighting back.
For an example of that, you need look no further than the American Transportation Research Institute (ATRI), a nonprofit trucking industry research group. Noting that cargo theft is “a common and growing problem,” ATRI voted earlier this year to prioritize research on what it termed the “cargo theft crisis.” Theft has evolved from thieves simply stealing cargo to using sophisticated impersonation schemes, the group said, adding that FBI statistics indicate losses from cargo theft amount to $15 billion to $30 billion annually.
But collecting data for the study won’t be easy. Many industry stakeholders are hesitant to publicly provide cargo theft data, the group said. To encourage participation, ATRI designed its survey with confidentiality in mind—even offering to sign a confidentiality agreement if needed. The aim of the study, which was launched in August, is to determine the scope of the cargo theft problem and to identify successful counterstrategies used by both motor carriers and freight brokers.
“Cargo theft is a pervasive issue that won’t go away without a collaborative effort,” Ben Banks, an ATRI member and vice president of Nashville, Tennessee-based truckload and logistics service provider TCW, said in a release. “With accurate cargo theft data, our industry will be able to quantify the issue and work more effectively with law enforcement and commercial insurance to combat this costly problem.”
As the threat grows, government agencies are doing their bit to protect industry players as well. For instance, the Federal Motor Carrier Safety Administration (FMCSA) recently issued an alert to truckers advising them of a phishing scam. In the notice, the FMCSA warned that hackers had been posing as FMCSA agents and sending spoofed emails to registered freight entities. These emails direct recipients to fill out forms asking for personally identifiable information, such as their social security or driver’s license number, or the carrier’s USDOT PIN, which could be used to gain access to its FMCSA account, according to the bulletin. It went on to note that the agency does not require such information on official FMCSA forms and that legitimate information requests would direct users to log into their FMCSA portal accounts.
HIGH-TECH WEAPONS FOR HIGH-TECH THREATS
Technology firms are also building up their cyberdefense arsenals, developing increasingly sophisticated tools to help their customers detect scams. Here are three examples:
Loadboard operator Truckstop in September introduced a “Risk Assessment System” to guard against increasingly dynamic and digitally driven freight fraud. “Fraud in the freight industry evolves daily at a breakneck pace,” Julia Laurin, chief product officer at Truckstop, said in a release. “We are launching the Risk Assessment System to give our customers and network participants another practical tool that breaks the tension of protecting their business … . The solution leverages real-time data from Truckstop’s ecosystem to provide a proprietary view of fraud and business risks, using innovative technology to detect emerging fraud signals.”
In October, freight-tracking technology provider Trucker Tools introduced its “Fraud Toolkit,” a suite of fraud identification features designed to help freight brokers protect their operations against increasingly sophisticated threats.
“The freight industry is facing unprecedented challenges from bad actors who are constantly evolving their tactics,” Trucker Tools CEO Kendra Tucker said in a release. “With the rise in sophisticated fraudulent activities, freight brokers need tools to identify fraud quickly. We know that double brokering alone claims $500 million [to] $700 million from carriers and brokers annually. Our fraud identification tools help our customers combat this.”
This summer, transportation management software (TMS) developer Transport Pro announced that it had teamed up with Tive, a real-time logistics visibility service, to provide shipment tracking and monitoring in real time. Under the arrangement, Tive trackers are placed directly onto the cargo in a trailer, enabling Tive to monitor the cargo’s whereabouts at all times. Freight brokers can get real-time updates by checking their Transport Pro dashboard.
“Fraud and cargo theft have been a hot topic for the past few years. Freight tech providers have some great tools for vetting carriers, but there are still a lot of bad actors slipping through the cracks,” Kenneth Kloeppel, president and founder of Transport Pro, said in a release. “Fundamentally, tracking the actual cargo with a hardware device is the only way to keep an eye on the shipment.”
NO MAGIC BULLET
Freight fraud defense tools and widescale industry initiatives can take a big bite out of crime. But complete cyber-resilience may be nearly impossible to achieve, according to LevelBlue, a security service provider formerly known as AT&T Cybersecurity. That’s partly because the transportation industry is struggling to balance technological innovation with computer security: A recent report from the company shows that 73% of transportation respondents say the opportunity of dynamic computing innovation outweighs the corresponding increase in cybersecurity risk. And only 53% of transportation executives say that cybersecurity is included in their broader corporate strategy discussions.
But the C-suite may be forced to rectify the situation. “As digital innovation takes center stage, cyber-resilience will be crucial to earning and upholding stakeholder trust, “ said Theresa Lanowitz, chief evangelist of LevelBlue, in a release. And stakeholder pressure to step up security would be difficult to ignore.
In the interim, there are plenty of steps companies can take to mitigate the risks and keep cybercriminals at bay. And they won’t have to do it alone: Judging from the recent announcements, government agencies, industry associations, and tech developers all stand ready to help.