CARGOCONNECT-APRIL2025 - Flipbook - Page 39
CYBER ATTACKS AND LOGISTICS : FEATURE
involved a ransomware incident targeting a European
shipping giant in early 2024, causing delays across supply
chains and incurring millions in operational losses.
Digitisation has opened new vulnerabilities,
with hackers exploiting operational technologies and
inadequately secured networks. Logistics networks,
responsible for sensitive customer data and automated processes, are prime targets due to the wealth
of actionable information they house. The interconnected
nature of logistics, from trucking and warehousing to
international shipping, makes the industry particularly
susceptible to chain-reaction disruptions.
“As we go more digital, we are exposing ourselves
to cyber-attacks.” says Sandeep Chatterjee, Supply
Chain and Sustainability Leader at IBM India. He
further explains, “No company does everything on its
own, and hence, there are partnerships. As speed and
resilience are key, sharing of data among partners
becomes imperative. The security level of each partner
is di昀昀erent, and any attack on any part of the supply
chain weakens the entire network. To quote Goldratt,
‘a chain is as strong as its weakest link’. Any attack
can cripple the network, and technically, any part of
the supply chain can be targeted.”
Sandeep adds, “Attackers in昀椀ltrate your networks
through an outside partner, often your third-party
supplier, with access to your systems and data. They
disable, disrupt, destroy, or control computer systems
to alter, block, delete, manipulate, or steal data, often
holding it for ransom.”
According to IBM’s 2022 X-Force Threat Intelligence
Index, ransomware is the most common type of cyberattack, accounting for 21% of incidents.
Parvinder Singh, Managing Director at Hans
Infomatic, says, “Cyber-attacks in logistics often exploit
vulnerabilities in systems like shipment tracking,
inventory management, and client databases.”
He highlights that attackers may deploy ransomware,
tampering with shipment data or halting critical systems
to disrupt operations and demand ransom.
He further shares, “Such disruptions ripple through
the supply chain, impacting timely deliveries, causing
昀椀nancial losses, and damaging partnerships.”
Parvinder emphasises that cyber-attacks undermine
visibility and control, directly weakening supply chain
resilience. He adds, “At Hans Infomatic, we prioritise
securing operations through real-time monitoring
and proactive defences to safeguard clients from such
disruptions.”
C K Govil, CMD of Activair Airfreight India
explains, “Cyber-attacks on logistics operations often
target critical systems like inventory management,
tracking, scheduling, and communication channels.” He
highlights that common threats include ransomware,
data breaches, and Distributed Denial of Service (DDoS)
attacks. He elaborates, “These attacks disrupt real-time
tracking, causing delays and lost visibility on goods in
transit, impacting planning across the supply chain.”
He further shares, “Data theft or manipulation undermines trust and may lead to 昀椀nancial and reputational
damage, while attacks on communication networks
disrupt coordination.”
Govil underscores the impact of ransomware, stating,
“Operational delays caused by system lockdowns can
halt shipments, increase costs, and lead to contractual
penalties.” He emphasises that attacks on inventory
systems a昀昀ect stock accuracy, order ful昀椀lment, and
customer satisfaction.
“These disruptions weaken overall supply chain
resilience, resulting in revenue loss and damaged
relationships,” he adds. Govil stresses the importance of
robust cyber security practices,
noting, “Protecting logistics
operations is critical to ensuring
In 2024, ransomware
a resilient supply chain capable
attacks and data
of withstanding such threats.”
Emerging Cyber
Tactics
breaches were among
the leading threats,
with the global cost of
cybercrime expected to
surpass US$10.5
trillion annually by
2025, up from US$8.4
trillion in 2022.
The interconnected nature of
logistics means a single breach
can ripple across global trade.
Ports, which handle over 80%
of international goods, have
become critical targets. For
instance, the Port of Los Angeles
reported a 20% increase in
attempted breaches in 2024
compared to the previous year, underscoring the heightened risk faced by maritime logistics hubs.
The rise of RaaS platforms like RAMP has democratised cybercrime. With over 14,000 registered members
and sophisticated o昀昀erings, these platforms enable even
low-skilled hackers to launch ransomware campaigns.
Companies with revenues around US$5 million, often
lacking robust cyber security measures, have become
attractive targets.
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