Logistics is the backbone of almost every supply chain. By 2030, the global logistics market is projected to surpass USD 18 trillion.[1] In Europe alone, approximately 10.4 million people were employed in logistics activities in 2022.[2] These numbers represent the sheer scale and importance of logistics in our current economy, highlighting that it is not a support activity but integral to operations.
At CORE, we have supported companies in embedding human rights due diligence across different logistics contexts, from product distribution and third-party warehousing to last-mile delivery, platform work and logistics businesses themselves.
This post focuses on two segments that are particularly central to supply chain operations: warehousing and road transportation, including last-mile delivery. Both are identified among the top trade infrastructure investment priorities in Global Trade Observatory Executive Survey. As investment grows in these areas, so does the need to understand and address the human rights risks that come with them.
What are the human rights risks in logistics and who is affected?
i. Warehousing
Warehousing workers face a range of risks, particularly where operations are subcontracted or rely on a transient workforce. Fragmented employment arrangements can make it difficult for companies to maintain visibility over day-to-day working conditions.
The work itself is physically demanding and can be hazardous. Workers may operate unsafe equipment, lift heavy loads, work in extreme temperatures and have limited rest breaks. At the same time, high productivity targets, constant performance monitoring and insecure contracts create sustained psychological pressure.
Forced labor risks have been documented in the sector, especially where temporary workers are recruited under precarious conditions. Migrant workers can be particularly vulnerable to exploitation, including debt bondage, withholding of wages and arbitrary wage deductions. Excessive working hours (particularly during seasonal peaks) are widely reported, and low wages are very prevalent.
Low unionization rates and limited access to collective bargaining further heighten these risks. Migrant workers often face additional barriers to organizing, and in some cases, union-busting practices have been reported.
ii. Road transportation and last-mile delivery
The physical hazards such as accidents, heavy loads and fatigue from extended time on the road are well known.
Less recognized is the extent to which the sector is exposed to forced labor. Migrant workers may be charged recruitment fees as part of the hiring process, resulting in workers being in debt even before starting their employment.[3] In addition, work permits or visa sponsorship are frequently tied to a specific employer, creating a high degree of dependency. In such situations, workers may be reluctant to raise concerns about unpaid wages or poor conditions for fear that their contracts will be terminated, potentially resulting in the loss of their immigration status.[4]
In last-mile delivery, many workers are not employed on permanent or direct contracts but instead work under short-term, flexible arrangements or are classified as self-employed. Workers that are not directly employed are often paid per delivery rather than per hour, which can lead to excessively long working days as income depends on output rather than time worked. These arrangements typically provide limited access to social security, insurance and stable employment pathways.
What are the drivers of human rights risks in the logistics sector?
To address such risks, companies need to understand why these risks exist in the first place and what drives them. Below are some of the structural characteristics of the logistics sector that may result in the presence of human rights risks:
Subcontracting is widespread in the sector. Logistics companies and e-retailers often outsource operations to subcontractors and temporary worker agencies. According to the European Transport Workers Federation, Germany outsources 50% of transport services, and in Poland about 100%.[5] While subcontracting can provide flexibility and cost efficiency, it can also reduce visibility over who employs workers and under what conditions.
In many countries, the logistics sector depends heavily on migrant labor. Migrant workers are often more exposed to precarious conditions due to language barriers, limited knowledge of their rights, and reliance on intermediaries. For example, labor shortages have driven recruitment from other EU and non-EU countries, but employment arrangements can leave workers vulnerable. Contracts are often short-term and residence permits may be tied to a specific employer, limiting the ability to change jobs. In some jurisdictions, migrant workers are also excluded from parts of labor law protections. These factors can increase dependency and heighten the risk of exploitation.
Purchasing practices can be an important but sometimes overlooked driver of risk. Aggressive price negotiations, inaccurate forecasting, short lead times, and last-minute changes can create operational pressure that moves through the supply chain. This pressure may affect working conditions if suppliers adjust labor costs or working hours to meet commercial demands. Due diligence that focuses solely on supplier compliance, without also examining how a company’s own purchasing decisions shape incentives and constraints, may miss part of the picture.
The misclassification of workers, particularly in last-mile and platform-based delivery, is also a growing concern. Treating workers as independent contractors rather than employees can shift financial and legal risks, such as those related to illness, accidents, or residence permit requirements, onto the workers themselves.
What can companies actually do to address human rights risks in logistics?
What this looks like in practice will depend on where you sit. You may be a business that relies on third-party logistics providers, for warehousing, road transport, or both, in which case your leverage and entry points will differ from a logistics company managing these risks in your own operations. Based on our work with companies across both contexts, the following are some key points for companies to consider:
Conduct a human rights risk assessment to identify your hotspots. For companies operating in or sourcing from logistics providers, a human rights risk assessment is a practical starting point. It helps identify where the most significant risks are likely to be and allows you to prioritize action accordingly.
Map subcontracting chains. Companies cannot manage what they cannot see. A first step is understanding how many tiers of subcontracting exist in the company’s logistics operations, who is actually employing the workers at the end of those chains, and under what conditions. Where chains are long or opaque, consider whether consolidating your supplier base or requiring direct employment for certain roles is feasible.
Examine your own commercial practices such as pricing, lead times, forecasting, last-minute changes, and if they are creating pressure that flows down to workers. This requires procurement and sustainability teams to work together, and in some cases means revisiting pricing models or building longer-term, more stable relationships with logistics providers.
Don’t stop at high-level screening of suppliers. Screening suppliers is an important baseline, but document review alone rarely captures what is actually happening on the ground. A more meaningful approach combines document review with systematic worker engagement, through interviews, surveys, or worker voice technology to surface issues that paperwork will not reveal.
Shift away from a ‘policing’ approach to partnering. Many supply chain management programs are still structured primarily around monitoring and enforcing standards. While oversight remains important, this approach has recognized limitations. Research consistently shows it misses structural issues and rarely drives lasting change. Suppliers may be willing to improve conditions but lack the support to do so. Building trust-based relationships with logistics providers, gathering feedback on challenges, and rewarding good practice are more likely to produce real improvement than audit cycles alone.
Pay attention to how technology is being used. AI-driven tools for performance monitoring, workload schedules and route planning are now common in logistics. While they can improve operational efficiency, they can also create risks if they are designed solely around speed and output. Companies should ensure that these systems are designed and used responsibly. Workers need to understand how performance is measured, how routes and workloads are assigned, and what data is being collected. There should also be a clear process for workers to question or appeal automated decisions they believe are inaccurate or harmful.
If your company uses drivers for your logistics operations, consider their employment status. The main risks for drivers including lack of social security, low wages, and limited options for development, can be meaningfully addressed by moving toward regular employment rather than flexible short-term contracts.
Finally, temporary labor agencies are a common feature of warehousing operations and can pose heightened risks, particularly for migrant workers. Companies should ensure they have clear oversight of the agencies supplying workers, verify that agency workers are employed under fair conditions, and ensure that responsible recruitment practices are in place.
Ultimately, effective human rights due diligence in logistics requires companies to take the structural realities of their supply chains into account and examine how their own business models and operational demands shape working conditions.
Lavanya for the CORE team
[3] Widespread Exploitation in the EU Road Transport Industry: The Case of Central Asian Truck, Drivers Road Transport Due Diligence
[4] Human Rights and Employment & Recruitment Agencies, Institute for Human Rights and Business
[5] European Transport Workers’ Federation
