The global trade backbone, the shipping industry, has witnessed remarkable progress in the past years. However, due to the increasing reliance on technology, it has also become a primary target of cyber threats. The number of cyberattacks on the maritime shipping industry saw a significant increase in 2020, going up by 400%. In the three years prior, attacks on ships and systems spiked by a massive 900%. These numbers show that the shipping industry is one of the major targets for cybercriminals.
In this blog, we will explore the significant impacts of cyber threats on the shipping industry. Gaining knowledge about these impacts is important to keep the shipping trade safe and secure.
Cyber Threats: What Are They?
A cyber threat pertains to any malicious activity that aims to compromise or access digital information and technology systems. These threats can emerge from various sources, like individuals, hackers, illegal organisations, and even governments. The motive behind cyber threats can span from stealing data to political spying and disrupting infrastructures.
These cyber threats encompass a broad range of methods and strategies, which are designed to exploit vulnerabilities. Some common examples of cyber threats include:
- Malware
- Denial of Service (DoS) and Distributed Denial of Service (DDoS) Attacks
- Data Breaches
- Insider Threats
- Human Error
- IoT Vulnerabilities
Top 5 Impacts of Cyber Threats on Shipping Industry
Cyber threats pose a concern for the shipping industry, impacting various aspects of shipping operations. The following are the main ways cyber threats affect the shipping sector:
1. Operational Disruptions
Relying on connected systems and digital technologies has made the shipping industry easily targeted by cyberattacks. When hackers get into important systems, they can mess up shipping navigations, communication, and cargo tracking. These disruptions can cause delayed deliveries, increased operational costs, and loss of customer trust. A cyberattack attack on a shipping company’s infrastructure can have significant effects beyond just its regular operations.
2. Supply Chain Disruptions
Cyber threats can seriously affect the shipping industry’s supply chain. For example, just like operational disruption, a cyberattack might focus on the systems that manage shipping, which can impact arrival and tracking. Since global supply chains are like a big web, if one shipping company has a cyber problem, it can ripple through the entire network. Problems in communication networks make it hard for different parts of the supply chain to work together. It’s important for companies to secure their systems to prevent these chain reactions.
3. Data Breaches and Privacy Concerns
The shipping industry handles vast amounts of sensitive information, like customer data, agreements, and operational details. A breach of this data can cause severe privacy concerns, affect business relationships, and even lead to serious legal problems. Additionally, this issue could provide competitors an advantage to do better which can damage a company’s spot in the market.
4. Financial Losses
Cyber threats can seriously impact a shipping company’s financial situation like ransomware attacks that lock up important data until a ransom is paid. This can lead to direct financial losses, such as the cost of the ransom payment, as well as indirect losses, such as regulatory fines and legal fees. In addition, the downtime caused by cyber incidents can result in missed business opportunities and decreased revenue. This makes it clear that cyber threats can make financial loss even worse.
5. Reputational Damage
When news of a cyber incident breaks, it can damage a shipping company’s reputation, leading to a loss of customer trust and potential loss of business. This can have long-term impacts on the company’s brand image.
Strategies: Safeguarding the Shipping Industry
As the shipping industry deals with the ongoing threat of cyberattacks, it’s important to find ways to protect against them. Here are some helpful strategies:
- Implement strong cybersecurity measures
This includes using firewalls, intrusion detection systems, and encryption methods to keep important systems and data safe. Regularly check for security issues and weak points so that hackers can’t take advantage of them.
Teach and Raise Awareness Among Employees
Employees can make mistakes that lead to cyber problems. Companies should regularly teach their employees about cybersecurity, focusing on how to spot fake emails, create strong passwords, and report anything that seems strange. When everyone knows about cybersecurity, they can help stop problems from happening.
Plan for Cyber Incidents
Shipping companies should be prepared for when cyber problems do happen. Create a clear plan for how to deal with them. This includes things like isolating affected systems, notifying the right people about the issue, and working with cybersecurity providers and experts to fix the problem and minimise the harm.
In Summary
The shipping industry has benefited greatly from advances in technology, but these same advances have also made the industry more vulnerable to cyber threats. These threats can have a wide range of consequences, from disrupting operations to harming reputation.
To tackle these challenges, shipping companies need to take a proactive stance on cybersecurity. This involves investing in strong systems, training employees, and developing plans to respond to incidents. Through these actions, companies can effectively navigate the complexities of the digital era, ensuring the security of their operations, reputation, and the overall future of shipping.