Post-Quantum Cryptography Enters the Global Supply Chain Race
December 23, 2019
Quantum Threats to Supply Chain Integrity
Although large-scale, fault-tolerant quantum computers are still years away, their projected ability to break RSA and ECC encryption already poses a severe risk to industries reliant on secure digital infrastructure — logistics chief among them.
Global supply chains depend on digital trust systems:
Encrypted communications between carriers and ports
Blockchain-based smart contracts
Shipment verification through IoT
Customs and trade data transfers across borders
If these systems are compromised by quantum attacks, the entire flow of global trade could be at risk.
This risk isn’t theoretical. In December 2019, the U.S. National Institute of Standards and Technology (NIST) moved to Round 3 of its Post-Quantum Cryptography Standardization Process, narrowing the field of candidate algorithms for public-key encryption and digital signatures.
The urgency was clear: supply chain stakeholders needed to begin testing PQC in real-world systems — not in 2030, but now.
IBM and Maersk Collaborate on Quantum-Secure Blockchain
IBM, which co-developed the TradeLens blockchain platform with Maersk, announced on December 23, 2019, that it had begun testing hybrid encryption protocols within TradeLens smart contracts.
TradeLens is used by:
Over 100 ports and terminals
Ocean carriers like CMA CGM and Hapag-Lloyd
Customs agencies across Europe and the Americas
The system logs over 10 million shipping events per week, making it one of the most influential blockchain networks in logistics.
IBM's cryptographic team, led by Vadim Lyubashevsky, a co-author of the CRYSTALS-Kyber and CRYSTALS-Dilithium PQC candidates, introduced a PQC extension into TradeLens smart contracts to:
Test lattice-based key encapsulation mechanisms (KEMs)
Secure multi-party logistics workflows against “store now, decrypt later” threats
Simulate future quantum-enabled attacks
“Supply chains are too critical to wait for quantum attacks to materialize. We must prepare them to resist cryptanalytic attacks that may arrive without warning,” said Ramesh Gopinath, VP of Blockchain Solutions at IBM.
China’s Quantum-Ready Logistics Infrastructure Strategy
Meanwhile, China doubled down on its strategic push into quantum-resilient logistics systems. A report by the China Electronics Technology Group Corporation (CETC), released in late December 2019, detailed a roadmap for integrating quantum key distribution (QKD) into:
Intermodal cargo hubs in Guangdong and Shanghai
Satellite-linked customs transfer stations
Smart bonded warehouses near Belt and Road Initiative corridors
The Chinese government, which launched the Micius quantum satellite in 2016, is seeking to create a national backbone of QKD-secured logistics corridors. CETC and the Beijing Academy of Quantum Information Sciences confirmed plans to test secure routing protocols for commercial shipments in 2020 using quantum key relays between logistics providers.
NATO Flags Quantum-Safe Communications as Critical to Defense Logistics
On December 4, 2019, during the NATO Leaders Meeting in London, post-quantum cryptography emerged as a defense logistics priority.
While the summit centered on defense spending and cyberwarfare, a classified briefing (later summarized by EUobserver) indicated that military supply chains, satellite-based cargo tracking, and coalition transport networks would all need to transition to quantum-safe encryption by the mid-2020s.
NATO’s Communications and Information Agency (NCIA) has begun an internal audit of cryptographic exposure in military logistics systems, many of which rely on legacy AES and ECC protocols.
“Quantum attacks won’t just target emails. They’ll aim to disrupt supply lines, medical equipment deliveries, and military logistics coordination,” warned Lt. Gen. Ludwig Leinhos, Chief of Germany’s Cyber and Information Domain Service.
ISO/IEC Begins Draft Framework for PQC in Global Trade
In the private sector, ISO/IEC JTC 1/SC 27, the subcommittee on IT Security Techniques, issued a preliminary draft in December 2019 outlining how future PQC protocols could be integrated into international trade systems.
The framework, called ISO/IEC 23837-1, recommends that vendors and logistics technology providers begin:
Implementing crypto-agile architectures that allow plug-and-play upgrades to PQC schemes
Using hybrid encryption during the transition period (PQC + classical)
Logging supply chain data in tamper-evident systems, ideally using post-quantum digital signatures
This standard will likely serve as the baseline for compliance frameworks used by customs unions, including the EU and ASEAN, by the mid-2020s.
Startups Respond: PQShield and Post-Quantum Offer Logistics-Focused Solutions
Two UK-based startups gained traction in December 2019 for their early work on PQC tailored for logistics:
PQShield, spun out of Oxford University, introduced its first post-quantum encryption toolkit designed for embedded IoT sensors used in cargo tracking and cold chain monitoring.
Post-Quantum Ltd., already working with the UK’s National Cyber Security Centre (NCSC), launched Nexus Logistics Guard, a beta software package offering hybrid encryption tools for fleet tracking systems.
Both companies confirmed trials with logistics tech integrators, with field tests planned for Q1 2020 in collaboration with UK port authorities and DHL’s innovation lab in Singapore.
Challenges Ahead: From Algorithms to Implementation
While enthusiasm is growing, several barriers still prevent widespread PQC adoption in logistics:
Hardware Constraints: Many existing warehouse and fleet devices lack the processing power for lattice-based encryption.
Interoperability: Global logistics relies on interconnected systems from dozens of vendors. Upgrading cryptography requires coordinated effort.
Lack of Awareness: Many mid-sized logistics firms are unaware of the quantum threat timeline and assume cryptography is a future issue.
Still, forward-looking organizations are starting now. The U.S. Department of Homeland Security (DHS) has warned that retrofitting insecure systems after the quantum threat materializes will be exponentially more expensive.
Conclusion: Supply Chain Security Must Evolve Ahead of the Curve
The events of December 2019 show that quantum resilience has officially entered the logistics conversation. Whether it’s IBM safeguarding blockchain workflows, China building QKD-enabled infrastructure, or NATO revisiting encryption across military logistics — the race is on to secure global trade before quantum computers break the cryptographic foundations we rely on.
The next decade will likely be defined by this proactive shift. Logistics, with its blend of criticality, complexity, and global interconnectivity, may be the proving ground for post-quantum cryptography in real-world systems.
The future of secure shipping may depend not just on speed or scale — but on being quantum-safe by design.