Post-Quantum Cryptography Gets a Logistics Testbed: Preparing Supply Chains for the Quantum Era
July 30, 2018
Quantum Threats to the Supply Chain: Not If, But When
With every major technological revolution comes an unintended consequence—and for quantum computing, that threat is encryption collapse.
As early as July 2018, researchers, governments, and logistics companies were mobilizing around a looming concern: quantum computers will be capable of breaking RSA and ECC encryption, the cryptographic backbone of most supply chain systems, from customs clearance to warehouse management and blockchain-based tracking.
In response, organizations across Europe and North America accelerated pilot programs for post-quantum cryptography (PQC) in logistics systems.
July 2018: NIST’s Post-Quantum Shortlist Expands
One of the most critical developments came on July 30, 2018, when the National Institute of Standards and Technology (NIST) in the U.S. expanded its post-quantum cryptographic standardization process, publishing a refined list of candidate algorithms.
This marked Round 2 of the NIST PQC competition—designed to identify encryption methods that are secure against both classical and quantum attacks.
Among the algorithms shortlisted were:
CRYSTALS-Kyber and CRYSTALS-Dilithium
NTRU and FrodoKEM
BIKE and SPHINCS+
Why does this matter for logistics? Because these algorithms will underpin the next-generation secure data protocols for:
Fleet management systems
Inventory databases
Digital freight networks (e.g., TradeLens)
Internet of Things (IoT) devices in warehouses and ports
The logistics industry was thus on notice: quantum-proof your cryptography—or risk future exposure.
DHL and Deutsche Telekom Launch PQC Trials
Also in July 2018, DHL partnered with Deutsche Telekom’s T-Labs to pilot post-quantum encryption for digital communications between logistics hubs and transportation partners.
Key goals of the trial:
Test hybrid encryption schemes (classical + post-quantum) in real supply chain messaging.
Simulate a “Harvest Now, Decrypt Later” threat scenario where adversaries intercept and store encrypted data now, to decrypt it later using quantum computers.
Evaluate the performance impact of post-quantum encryption on real-time logistics operations.
Initial results, presented at the PQCrypto 2018 conference in Fort Lauderdale, showed promising performance—even with increased computational load, most PQC algorithms ran efficiently enough for practical supply chain deployment.
The European Push: ETSI and Quantum-Resilient Logistics
July 2018 also saw action from ETSI (European Telecommunications Standards Institute), which launched a working group focused on Quantum-Safe Cryptography in Supply Chains.
Among the participants:
Airbus (with aerospace and defense supply chain exposure)
Orange
Thales
Maersk (through indirect consultation via TradeLens blockchain)
The group focused on:
Ensuring interoperability of PQC across customs systems, IoT platforms, and maritime tracking software.
Assessing regulatory compliance risks when transitioning to quantum-safe standards.
Crafting a readiness checklist for logistics providers.
Their collective message: by 2025, every logistics system handling sensitive commercial or national security goods must begin adopting quantum-resilient encryption.
Quantum Blockchain Gets a Closer Look
Blockchain had, by 2018, become a darling of logistics tech, with projects like IBM-Maersk’s TradeLens, Europe’s CargoSmart, and the Port of Rotterdam’s blockchain pilot promising tamper-proof tracking of containers.
But blockchain’s Achilles heel is its reliance on classical cryptographic signatures (ECDSA in Bitcoin, for example), which quantum computers could eventually break.
In July 2018:
Researchers from University College London and MIT published papers on quantum-resistant blockchain designs.
A startup called QANplatform began promoting its quantum-proof smart contract protocol, claiming it could survive quantum decryption attacks.
The Hyperledger project discussed PQC integration into Hyperledger Fabric, which is used in supply chain solutions.
These efforts signaled that blockchain-based logistics tracking was being re-engineered for a quantum future—long before the quantum threat fully materialized.
Supply Chain Hardware: Vulnerability and Resilience
Beyond software and data protocols, hardware endpoints in the supply chain—from scanners and sensors to routers and autonomous drones—also stood exposed.
July 2018 saw:
Infineon Technologies announce development of quantum-resistant chips for logistics gateways and connected devices.
The UK’s National Cyber Security Centre (NCSC) releasing new guidance on quantum-safe hardware upgrades in operational technology (OT) environments such as ports, airports, and warehouses.
The risk? If a quantum attacker could compromise RFID readers, route optimizers, or fleet controllers, they could disrupt deliveries, falsify cargo data, or trigger mass delays.
Financial Incentives for Quantum-Proofing Logistics
July 2018 also saw a number of early signals from insurers and regulators:
Munich Re began assessing quantum risk exposure in cyber insurance policies for global freight networks.
Lloyd’s of London underwriters reportedly considered adding quantum cryptography exclusions to marine cargo policies starting in 2021.
The International Air Transport Association (IATA) quietly advised its member carriers to begin evaluating quantum threats to digital air cargo tracking.
In short: post-quantum readiness wasn’t just a security issue—it was becoming a financial imperative.
Logistics Industry Still Largely Unprepared
Despite these early warnings, most of the logistics sector remained in a “wait and see” posture as of July 2018:
A Gartner survey that month showed only 3% of transportation and logistics CIOs had a roadmap for PQC migration.
Many logistics IT systems still ran on legacy encryption models embedded deep in ERP or warehouse software.
Awareness of the “harvest now, decrypt later” threat was minimal outside of government-facing contractors or aerospace firms.
This mirrored the broader tech ecosystem, where quantum urgency was largely confined to security researchers and cryptographers.
Conclusion: Begin the Transition, Before the Transition Forces You
The events of July 2018 were a quiet turning point: the post-quantum future became more than theoretical. From NIST’s algorithm shortlist to DHL’s trials and ETSI’s guidance, the logistics sector began confronting its biggest digital blind spot.
Quantum computing's threat to supply chain security may still be five to ten years away, but that timeline is deceptive. Sensitive logistics data being transmitted today can be intercepted and stored indefinitely. The attacker doesn’t need to break your encryption now—they just need to wait until your system is obsolete.
The smart players—DHL, Maersk, Infineon, and others—are taking steps now. Their message to the industry: quantum logistics isn’t only about route optimization. It's also about protecting the digital arteries that keep global trade moving.