Post-Quantum Cryptography Gains Urgency as Supply Chains Brace for Future Threats
March 30, 2020
Post-Quantum Cryptography Becomes a Supply Chain Priority
The COVID-19 pandemic dominated global headlines in March 2020, but in parallel, another less visible threat was gaining urgency in the world of logistics: quantum decryption. As advances from Honeywell, IBM, and Google pushed quantum hardware closer to practical applications, security experts began warning that RSA, ECC, and other widely used encryption methods may become breakable within the next decade.
That prospect has direct and serious implications for the global logistics sector, which relies heavily on encrypted communications for:
Customs and shipping declarations
GPS and routing data
IoT-enabled container monitoring
Warehouse systems
Financial transactions across freight operators and 3PLs
Recognizing this risk, multiple initiatives during March 2020 began to prioritize the shift to post-quantum cryptography (PQC)—a class of encryption algorithms designed to withstand quantum attacks.
The Quantum Threat Timeline: A Logistics View
Quantum computers powerful enough to break RSA-2048 or ECC are still several years away, but the logistics industry faces a unique challenge: “harvest now, decrypt later” attacks.
Cybercriminals, state actors, or competitors could capture encrypted logistics data today—such as manifests, customer lists, or routing schedules—and store them until quantum computers mature enough to decrypt them.
This is particularly concerning for:
Pharma logistics (e.g., vaccine supply chains)
Defense and aerospace shipments
Cross-border freight involving trade secrets
Ports and customs operations with sensitive declarations
Logistics organizations can no longer afford to wait until quantum systems are commercially ready—they must act now to protect data with quantum-resilient cryptography.
NIST’s PQC Standardization Push Gains Industry Attention
In March 2020, the U.S. National Institute of Standards and Technology (NIST) released updates on its Post-Quantum Cryptography Standardization project, narrowing the candidate algorithms to a final set of viable cryptosystems. Logistics tech providers began monitoring these developments more closely.
Key algorithms under evaluation included:
CRYSTALS-Kyber for key encapsulation
CRYSTALS-Dilithium for digital signatures
NTRUEncrypt and SABER for hybrid post-quantum encryption
While originally targeted at government and financial sectors, several logistics and IoT cybersecurity firms—such as Karamba Security, BlackBerry Cylance, and Armis—began integrating NIST candidate algorithms into edge device firmware and secure container tracking systems during this time.
EU's Quantum Flagship Expands Maritime PQC Trials
In parallel, the EU Quantum Flagship initiative, a €1 billion investment program launched by the European Commission, expanded its focus in March 2020 to include maritime and port security.
Specifically, the CiViQ project (Continuous Variable Quantum Communications), one of the flagship’s key sub-programs, began exploring how quantum key distribution (QKD) and PQC could secure communication between smart port infrastructure in Hamburg, Rotterdam, and Antwerp.
Initial trials included:
Securing ship-to-shore communication logs
Encrypting cargo loading/unloading coordination data
Protecting blockchain-based bills of lading
While QKD remains limited in scalability, its pairing with PQC protocols creates a defense-in-depth model relevant to logistics hubs that face rising cyber espionage threats.
Asia-Pacific Moves: Japan and South Korea Step In
In March 2020, Japan’s National Institute of Information and Communications Technology (NICT) published a strategic roadmap for deploying PQC across critical infrastructure sectors—including logistics and transportation.
The initiative was supported by key players such as:
Hitachi Transport System, which operates cold chain and intermodal logistics solutions across Asia
KDDI and NTT, exploring QKD-enhanced network layers for secure logistics routing
Meanwhile, South Korea’s LG CNS and Samsung SDS both launched pilot studies involving PQC in blockchain-based freight tracking tools used by Hyundai Glovis and Korean Air Cargo.
These developments, though incremental, marked a growing acknowledgment in East Asia that quantum security readiness is not a theoretical concept—but a near-future necessity.
Industry Adoption: Challenges and Approaches
Despite the awareness, widespread adoption of PQC in logistics faces major challenges:
1. Legacy Infrastructure
Many WMS (Warehouse Management Systems) and TMS (Transportation Management Systems) still run on legacy frameworks incompatible with modern cryptographic stacks. Upgrading them is capital intensive.
2. Interoperability
Logistics networks involve dozens of partners across jurisdictions. A PQC-secured platform is only as strong as its weakest link. Standardized protocols are still evolving.
3. Real-Time Constraints
Post-quantum algorithms are often more resource-intensive. In real-time routing or drone communication, the added latency may create operational inefficiencies if not optimized properly.
To overcome these issues, hybrid cryptography models are being explored. These combine current algorithms (like AES and ECC) with quantum-resistant components, allowing a smoother transition.
Blockchain and PQC: A Growing Alliance in Freight Security
Another area seeing rapid convergence is blockchain logistics platforms adopting PQC. In March 2020:
TradeLens, the IBM-Maersk blockchain platform for ocean freight, published internal research on integrating PQC for smart contract signing.
VeChain, widely used in food and luxury logistics traceability, announced compatibility with NIST PQC candidates in future software updates.
OriginTrail, focused on pharmaceutical and food traceability, initiated a partnership with researchers at ETH Zurich to test quantum-safe signing protocols.
These initiatives reflect a broader understanding that blockchain traceability alone is insufficient if the underlying data can be decrypted by future adversaries.
Conclusion: Logistics Enters the Post-Quantum Transition
March 2020 marked a pivotal month in which post-quantum cryptography moved from academic concern to strategic imperative for the logistics industry. As quantum computing advances accelerate, logistics leaders must recognize that cyber vulnerabilities today could become business failures tomorrow.
The shift won’t happen overnight. But by embracing PQC early—through firmware updates, blockchain integrations, hybrid encryption, and cross-border collaboration—supply chain stakeholders can protect the lifelines of global commerce from the disruptive power of quantum decryption.
The message is clear: Future-proofing starts now.