CARGOCONNECT-APRIL2025 - Flipbook - Page 40
FEATURE : CYBER ATTACKS AND LOGISTICS
SANDEEP CHATTERJEE
Supply Chain and Sustainability Leader,
IBM India
As we go more digital, we are exposing
ourselves to cyber-attacks. No company
does everything on its own and hence,
there are partnerships. And as speed
and resilience are key, sharing of data
among partners becomes imperative. The security level of each partner
is different 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’. Also, as the partners orchestrate, any attack cripples the network.
So technically, any part of the supply chain can be attacked.
PARVINDER SINGH
Managing Director, Hans Infomatic
Cyber security is increasingly becoming
an essential pillar of digital transformation in logistics, especially as IoT, AI,
and automation drive new efficiencies.
Logistics companies are embedding
cyber security in these advancements,
securing endpoints, strengthening network defences, and enhancing
data encryption across digital platforms. Hans Infomatic’s technology
solutions are built with cyber security at their core, allowing clients to
confidently integrate IoT, AI, and automation while safeguarding their
operations and customer data, thereby enhancing both safety and trust
in cargo and logistics systems.
The 昀椀nancial toll of cyber-attacks on logistics is
staggering. According to estimates, the average cost
of a data breach in transportation and logistics was
approximately US$4.65 million in 2023. Beyond direct
losses, companies face reputational damage and legal
liabilities, particularly when customer data is compromised. Operational disruptions, meanwhile, can
result in cascading delays, missed deliveries, and stock
shortages—damaging customer trust and long-term
business relationships.
Sandeep notes, “Cyber-attacks on supply chains
are not just a 昀椀nancial burden but a critical threat to
long-term business continuity and trust. The global
cost of these attacks is projected to skyrocket to US$138
billion by 2031, highlighting the severity of the issue.”
He elaborates, “Attacks like the Colonial Pipeline
incident showcase the dual impact — direct costs like
40 | CARGOCONNECT APRIL 2025
ransom payments and indirect consequences on operations and public con昀椀dence. With Gartner predicting
a three-fold increase in supply chain attacks by 2025,
businesses must prioritise cyber security to safeguard
operations, reputation, and stakeholder trust.”
Sandeep emphasises, “The average cost of a cyberattack is US$4.35 million, but the ripple e昀昀ects can be far
greater. It’s no longer optional to address these threats;
it’s imperative for ensuring resilience and continuity
in an interconnected world.”
He further highlights, “In the era of DevOps – fast
and continuous development – one simply cannot secure
software from the outside. Fundamentally, the only
way to keep up with the pace of software change is to
get developers actually building secure software and
move the security to be where the decision is made.”
Megan Poortman, Head of Cyber Security at
London Gatwick Airport, in an interview to Infosecurity
emphasises, “Managing large supply chain estates
presents challenges across all industries, particularly
in terms of resources, technologies, and toolsets.” She
explains that at Gatwick, addressing supply chain
cyber security involves conducting risk assessments
and initiating discussions with suppliers about the
importance of cyber protection.
She highlights, “Being part of Critical National
Infrastructure (CNI) makes us a key target for cyberattacks, and this extends to our supply chain.” Megan
昀氀ags the need to integrate cyber security into contractual
discussions, similar to how health and safety were
prioritised in the past.
Megan emphasises the importance of secure supply
chain partnerships in critical operations. “We prioritise
strategic partners who align with our cyber security
objectives. Any vulnerabilities in their systems can
disrupt essential operations, so it’s vital to ensure they
integrate cyber protection into their processes and are
equipped to report breaches e昀昀ectively.”
In July 2024, Gatwick airport was impacted by the
CrowdStrike global IT outage. Megan re昀氀ects on the
incident, drawing critical insights into its impact on
supply chain cyber security. “This incident revealed the
