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Report: 44% of ocean carriers show ‘cyber weakness’

Maersk Line and parcel carrier TNT Express are just now getting major functions back online after last week’s massive cyber attack, compounding a systematic problem that needs to be addressed immediately, according to SeaIntel’s Lars Jensen.

   Cyber weakness is more common among the shipping industry than many would like to think.
   In fact, 44 percent of carriers show signs of low levels of cyber security, according to an analysis by CyberKeel.  CyberKeel specializes in maritime cyber security and penetration testing. Last week’s cyber attack on Maersk Line, the world’s largest ocean carrier, proves that even a large companies can have cyber security vulnerabilities.
   This is compounded by lax client-facing security as well. According to Lars Jensen, CEO and partner at SeaIntelligence Consulting, “a top-20 carrier allows shippers using their eCommerce platform to use ‘x’ as their password,” while a “top-5 carrier claims that the password ‘12345’ is of ‘medium’ strength,” meaning a cyber attack on Maersk or other top industry players is anything but far-fetched.
   While it’s not possible to be completely safe from cyber attacks, high levels of security will prevent an infection from spreading laterally in the network, which cannot be said of Maersk after the attack was launched.
   Initially, Maersk’s contingency plan was to set up rudimentary functions within 36 hours, however, it has taken longer than expected to have operations returned to normal.
   “Given the state of affairs in the industry at large, it is crucial that the maritime companies look at the Maersk case and learn from it and create more robust and resilient systems – otherwise this will not be the last time we see such challenges arise,” Jensen said in a recent LinkedIn post.
   Maersk reported that it had restored its major applications on Monday, with client-facing operations being the main priority. The company’s port operator arm, APM Terminals, has also resumed operations and its highly-automated flagship Maasvlakte II Terminal in the Port of Rotterdam began import deliveries on Monday as well. Tracking and shipment binder data is available, but it is only current for load and discharge data before July 2.
   The company said it expects to have all 1,500 of its applications fully functional within a week. However, at this time, Maersk still does not have phone connections in all markets, nor track and trace features due to the backlog on shipment status updates.
   In an update emailed on Thursday, Maersk said, “Our business-critical systems and e-channels are up and running. This allows all new business to continue almost as normal. However, as we are still catching up on the backlogs, you will experience slower than normal response.”
   Additionally, Maersk said it is currently unable to stabilize processes for “dissemination of prices to customers shipping on short term rates.”
   However, the company said it “will honor all rates communicated and make sure that all changes will be reflected, even retroactively,” adding that it hopes to be fully functioning by early next week.
    FedEx subsidiary TNT Express, another freight company hit by the Petya cyber attack, is slowly coming back online. Customers visiting TNT’s website are greeted with a popup that states it is implementing remediation steps as quickly as possible to support customers who experience limited interruption in pick-up and delivery operations and tracking systems access.
   According to Air Cargo Week, TNT IT systems are back to normal, but backlogs and delays are still plaguing the company. TNT says it will make use of FedEx Express systems and infrastructure as a contingency plan. Until that point, TNT networks will remain in place to minimize the impact to customers, but the company warns some customers may continue to experience delays in service and access to package information.
   Furthermore, TNT “cannot measure the financial impact of this service disruption at this time, but it could be material,” according to Air Cargo Week.