Post-Quantum Cryptography Gains Traction as Global Supply Chains Brace for Quantum Threats

October 2019 witnessed a sharp uptick in global concern over the long-term cybersecurity risks that quantum computers pose to logistics and supply chain networks. With advances in quantum computing from Google and other industry leaders, the international logistics sector—long reliant on encryption protocols such as RSA and ECC—began to seriously explore post-quantum cryptography (PQC) as a defensive necessity.

While it may take another decade before a fault-tolerant quantum computer capable of breaking classical encryption is realized, experts argue that “harvest now, decrypt later” attacks are already underway, in which malicious actors intercept and store encrypted logistics data today in hopes of decrypting it once quantum capability arrives.

In response, both governments and multinational logistics providers began initiating trials, issuing guidance, and funding research into quantum-resistant encryption, secure supply chain key management, and long-term data integrity protection.

U.S. and Global Governments Signal Urgency

On October 23, 2019, NIST (National Institute of Standards and Technology) held its third annual Post-Quantum Cryptography Standardization Conference, signaling the rising urgency of selecting secure algorithms for government and commercial use. NIST’s focus was not limited to financial or defense systems—the agency specifically cited the need for secure supply chain communication protocols in industries ranging from agriculture to e-commerce.

Concurrently, the EU’s Quantum Flagship Program published its 2019 report emphasizing the need for quantum-safe infrastructure in customs clearance systems, logistics hubs, and cross-border freight channels. The report projected that major European ports like Rotterdam, Antwerp, and Hamburg would be early adopters of quantum-resistant logistics frameworks by 2025.

DHL and Maersk Begin Post-Quantum Readiness Assessments

Private industry also responded. In late October 2019, DHL and Maersk, two of the world's largest logistics operators, began internal assessments of their exposure to quantum vulnerabilities. According to a leaked presentation from a DHL internal cybersecurity forum, the company is evaluating quantum-safe VPNs and quantum key distribution (QKD) trials in select regions.

Meanwhile, Maersk’s Chief Information Security Officer (CISO) spoke at the Cyber Security for Critical Infrastructure event in Copenhagen, emphasizing the company’s plan to:

• Map all logistics-related encryption endpoints

• Identify data-in-transit channels vulnerable to future decryption

• Explore PQC integration in cargo tracking systems and customs APIs

The presentation highlighted a pilot program in coordination with IBM’s Zurich Lab, where Maersk is exploring integration of CRYSTALS-Kyber, one of NIST’s leading PQC finalists, into its secure EDI protocols for container management.

Why Supply Chains Are a Quantum Target

Modern logistics networks depend on a complex web of secure communications:

• Warehouse-to-truck dispatch systems

• Cross-border customs document exchanges

• IoT telemetry from containers and smart shelves

• Third-party supplier and invoice data routing

• Blockchain smart contracts for freight payment

All of these rely on classical encryption. Quantum computers pose a particular threat to public-key infrastructure (PKI), used in TLS, digital signatures, and identity management. When quantum computers can run Shor’s Algorithm on large-scale systems, RSA and ECC become obsolete.

Even before that day comes, actors capable of intercepting encrypted supply chain data—such as national intelligence agencies or cybercriminal syndicates—can store encrypted records for future decryption and analysis. For example:

• Delivery records could be mined for sensitive buyer behavior

• Customs data could expose national import trends

• Smart factory controls could be hijacked using stolen keys

Enter Post-Quantum Cryptography

Post-quantum cryptography refers to cryptographic systems that run on classical computers but are resistant to known quantum attacks. In October 2019, NIST’s competition had narrowed the field to 26 candidate algorithms. Several of these—such as Kyber, SABER, and Dilithium—were seen as strong contenders for future supply chain use.

Advantages of PQC for logistics:

• Compatible with existing infrastructure (no quantum hardware needed)

• Can be integrated into IoT firmware for cargo tracking

• Supports secure over-the-air updates for warehouse robotics

• Works with hybrid encryption models, blending classical and quantum resistance

Companies such as Thales, ID Quantique, and Cisco began marketing PQC-ready products in October 2019, with logistics system integrators among the target clients.

What About Quantum Key Distribution?

While PQC uses classical algorithms, Quantum Key Distribution (QKD) relies on quantum mechanics to securely exchange encryption keys. Some researchers advocate QKD as a more “future-proof” method for high-value supply chain channels—especially in aerospace, defense logistics, or critical vaccine cold chains.

In October 2019, China’s QuantumCTek announced a partnership with China Railway Express to test QKD-secured logistics routes between Beijing and Urumqi, a 3,000-kilometer corridor critical to the Belt and Road Initiative. This was one of the first practical trials of quantum-secured long-distance freight corridors.

However, the high cost and infrastructure requirements of QKD—such as fiber links and satellite relays—mean it remains niche, at least for now.

Immediate Next Steps for Logistics Firms

Experts recommend that logistics companies act now by:

• Conducting quantum vulnerability assessments of existing infrastructure

• Testing PQC algorithms in parallel with current cryptographic systems

• Staying informed on NIST’s standardization timeline, with selections expected by 2022

• Engaging with supply chain partners, especially customs authorities, about coordinated quantum-safe transitions

• Avoiding “crypto paralysis”, where fear of future quantum threats leads to inaction

Cybersecurity consultancy firm Booz Allen Hamilton warned in an October 2019 report that, “The operational lifespan of logistics data may outlast the time-to-quantum. You don’t need a million-qubit quantum computer to wreak havoc on stored freight manifests and port access credentials.”

Conclusion

As October 2019 made clear, the quantum threat to logistics is not theoretical. It is practical, imminent, and already shaping R&D priorities and procurement policies across the globe.

The good news? Solutions exist. From post-quantum cryptography that’s already in pilot, to niche quantum communication methods like QKD, the sector is not powerless—but must act before the window of secure transition closes.

The shift toward quantum-safe logistics will not happen overnight. It will require years of coordinated effort across governments, vendors, freight operators, and cybersecurity stakeholders. But as the adage goes: “The best time to prepare for quantum was yesterday. The second-best time is now.”