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Logistics at the Crossroads: Embracing Digital Transformation for a Resilient Future

Daily FT

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August 15, 2025

On this National Logistics Day, we pause to recognize an industry that silently yet powerfully keeps the world movinglogistics. From delivering essentials during crises to connecting global economies, the logistics and freight forwarding sector is the unsung hero behind modern life. But as we look around in 2025, it’s clear that the industry is not merely evolving—it’s undergoing a complete transformation.

- By SUJAN MALAWANA

Logistics at the Crossroads: Embracing Digital Transformation for a Resilient Future

We are standing at a defining moment. The past few years have brought unprecedented challenges: global supply chain disruptions due to COVID-19, the Suez Canal blockage, the Russia-Ukraine conflict, Red Sea tensions, fuel price volatility, and shifting geopolitical alliances. These events tested the endurance and agility of logistics providers worldwide. But perhaps more importantly, they also served as a wake-up call. It’s no longer enough to be reactive. The future of logistics lies in being proactive—and that means embracing digital transformation as the backbone of resilience.

Why Digital Transformation Matters More Than Ever

Digital tools are no longer “nice to have”—they’re the difference between staying competitive and becoming obsolete. Automation, Al-driven analytics, Internet of Things (IoT), blockchain, and cloud-based platforms are revolutionizing the way goods are moved, tracked, and managed.

Imagine a world where a freight forwarder in Colombo can track a shipment in real time from Shanghai to Rotterdam, using predictive analytics to preempt port congestion and blockchain to ensure secure documentation. That world is not five years away— it’s happening now.

Smart warehousing with robotics, digital freight marketplaces, dynamic route planning, and contactless customs clearance are becoming standard practices in advanced logistics environments. These aren’t just tools for efficiency; they are enablers of speed, transparency, cost-effectiveness, and sustainability.

Challenges for Developing Economies Like Sri Lanka

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