Following several damaging attacks on shipping and logistics companies, cyber security analysts warn the industry remains dangerously vulnerable.
In 2017, FedEx's European subsidiary TNT Express was hit by the NotPetya cyberattack, costing the company an estimated $400 million. That same year, shipping giant Maersk suffered a catastrophic ransomware attack that crippled operations across 76 port terminals worldwide, with recovery costs reaching $300 million. In 2020, Australian logistics firm Toll Group was struck by ransomware twice in three months, forcing the company to shut down its IT systems and resort to manual processes.
The International Maritime Organization (IMO) has since mandated that shipping companies incorporate cyber risk management into their safety management systems. Yet the industry continues to lag behind other sectors in its approach to cyber security. Maritime vessels, port infrastructure, and logistics supply chains remain riddled with vulnerabilities that sophisticated attackers can exploit.
Digital Complexity
Modern logistics operations are built on layers of digital complexity. Legacy systems that were never designed for internet connectivity now interface with cloud platforms, IoT sensors, and automated supply chain management tools. Container tracking systems, electronic bills of lading, port management software, and fleet telematics all create an interconnected web of technology that expands the attack surface exponentially.
Many shipping companies still run critical systems on outdated operating systems that no longer receive security patches. These legacy systems are vulnerable because they weren't designed to be connected to the Internet, let alone deal with cyber attacks. The rapid adoption of IoT devices across the supply chain -- from smart containers to autonomous cranes -- introduces thousands of new endpoints that must be secured, monitored, and maintained.
Cyber Security Risk Management
The first step in securing logistics operations is identifying the problems. A comprehensive cyber security risk assessment examines every digital touchpoint across the organisation, from shore-based IT infrastructure to onboard vessel systems. This assessment must map out all connected devices, software dependencies, data flows, and access points to build a complete picture of the organisation's exposure.
Risk management in the logistics sector requires a tailored approach. Unlike a traditional office environment, logistics companies must account for operational technology (OT) systems that control physical processes, remote assets that operate with intermittent connectivity, and a vast ecosystem of third-party partners who share data and system access.
The Human Factor and Prevention
People are consistently the weakest link in any cyber security strategy. A thorough people assessment identifies who has access to what systems, whether access privileges are appropriate for their roles, and how well staff understand the cyber threats facing the organisation.
Network architecture analysis is essential for understanding how data moves through the organisation and where it is most vulnerable. Proper network segregation ensures that a breach in one area of the business cannot easily spread to others. Separating operational technology networks from corporate IT networks is particularly critical in the logistics sector, where a compromised office computer should never be able to reach the systems controlling port cranes or vessel navigation.
Minimum Cyber Security Privilege
The principle of minimum privilege dictates that every user, device, and application should have only the access rights necessary to perform its function -- and nothing more. In practice, this means implementing strict access controls, regularly reviewing user permissions, and removing access immediately when it is no longer required.
Banning personal devices from sensitive network areas, controlling the use of removable media such as USB drives, and enforcing strong authentication policies are all fundamental measures. In the maritime context, where crew members rotate frequently and shore-based contractors require temporary access, managing these controls requires disciplined processes and robust identity management systems.
Legacy systems are vulnerable because many weren't designed to be connected to the Internet, let alone deal with cyber attacks. — Jonathan Sharrock, Cyber Citadel
The Value of Training in Cyber Security
Training is one of the most critical and cost-effective investments a logistics company can make in its cyber security posture. Educating staff to recognise phishing emails, social engineering attempts, and suspicious network activity can prevent the vast majority of successful attacks before they begin.
Low-cost improvements, such as regular awareness sessions, simulated phishing exercises, and clear reporting procedures, deliver outsized returns in risk reduction. Building a positive cyber security culture -- where staff feel empowered to report suspicious activity without fear of blame -- is essential for creating a resilient organisation.
Swift Responses
Detection and monitoring capabilities are the backbone of an effective cyber security programme. The ability to detect an intrusion quickly can mean the difference between a contained incident and a catastrophic breach. Continuous network monitoring, log analysis, and anomaly detection systems provide the visibility needed to identify threats in their early stages.
Training staff to recognise the signs of a cyber incident is equally important. Front-line employees who notice unusual system behaviour, unexpected access requests, or unfamiliar network activity can serve as an early warning system that complements technical detection measures.
Incident Response Plan
When a cyber attack occurs, the speed and effectiveness of the response determines the ultimate impact. Isolation of affected systems is critical -- the ability to quickly disconnect compromised systems from the wider network can prevent a localised breach from becoming an enterprise-wide disaster.
The Maersk attack demonstrated this principle in devastating fashion: the company was forced to replace approximately 45,000 computers and 4,000 servers to recover from the NotPetya infection. Had effective network segregation and rapid isolation procedures been in place, the damage could have been significantly reduced.
Maintaining regular, tested backups stored in isolated environments is essential. An organisation that can restore its systems from clean backups is far better positioned to recover from a ransomware attack without paying a ransom.
A systematic approach to cyber security -- encompassing risk assessment, prevention, detection, and response -- is the only way to protect logistics operations in an increasingly hostile digital environment. The cost of implementing proper cyber security measures is a fraction of the cost of recovering from a major breach.
Published in The Daily Cargo News — August 2020