The Memo: Cyberattacks on the rise across the shipping industry

The shipping industry isn’t exactly having an easy time of things right now. Plighted by a multitude of geopolitical tensions and heightened piracy, the practice area now faces yet another intensified roadblock: maritime cyberattacks. The number of recorded instances has spiked in recent years according to the Financial Times, and ships and their IT infrastructure have become regular targets of state and non-state affiliated hackers looking to disrupt global trade flows. 

Maritime assets headed by companies and ports alike – in addition to vital infrastructure such as energy facilities, railways, and airports – have consistently been easy targets due to their extreme importance to the global economy. To outline the severity of shipping disruption, the International Chamber of Shipping states that the industry is responsible for the carriage of goods constituting 90% of world trade. This includes raw materials, foodstuffs, and manufactured products, meaning that freight disruption can have disastrous consequences on the economic state of the world. Furthermore, as London-based legal shipping specialists at HFW report, the average cyberattack on the industry can cost the targeted organisation up to half a million US dollars. 

Whilst pirates or other unwanted boarding parties would have historically been the biggest threat, fears of cyberattacks are a very modern problem. Such digital infiltration carries the risk of IT malfunctions, financial damage, and the loss of data, on top of compromising communication systems, cargo, and ballast water. Insiders have long feared that cyber hackers may one day be able to take control of the ship itself. If such a feat became possible, hackers could not only cause damage to the ship and its goods but would also be presented with the opportunity to block crucial transit routes and cause unprecedented economic harm. 

Greater risk control, contingency processes, and enhanced detection practices can help prevent and mitigate cyberattacks, alongside tougher security laws and guidelines set by the International Maritime Organization (IMO) and other regulatory bodies. Shipping lawyers are also a key part of the equation and are typically called in when a crisis hits to help reduce potential loss for their clients. To find out more about what lawyers in the space do, check out our shipping practice area guide here.