How Cyberattacks Can Threaten Global Logistics

Add cyberattacks to the list of potential disruptions to global logistics and supply chains.

Natural disasters, political upheaval, large-scale bankruptcies and even a single warehouse fire can delay or disrupt everything from production to fulfillment.

Cyberattack have threatened supply chains before. But, by hobbling the world’s largest shipping line, Petya this week demonstrated dramatically how disruptive cyberattacks can be.

A Cyberattack for Destruction

At first, Petya appeared to be strictly a ransomware attack. Petya showed itself on June 27, impacting 80 organizations in Russian and Ukraine initially, according to a Moscow-based security firm. The attack encrypted data on infected screens and demanded $300 in Bitcoins to unlock the systems.

Then, Petya started to pop up all over the world, taking down thousands of systems at big corporate offices, factories and other facilities in 60 countries. Consequently, news media reported some businesses sought to pay the ransom.

But according to Engadget, security experts believe the attack never really amounted to extortion. In the first place, Petya made it difficult for victims to pay the ransom. Furthermore, and more critically, the malware doesn’t encrypt data. It completely erases data from parts of a PC’s hard drive.

As Kaspersky Lab’s head of research summarized it, the attack was not for financial gain, but widespread destruction, according to Fortune.

Theories vary on the ultimate reason for the Petya attack, but because the shipping giant Maersk and a subsidiary of FedEx both fell victim, cyberattacks clearly can seriously disrupt global logistics.

Fallout for Supply Chains

Netherlands-based Maersk is the world’s biggest cargo shipping firm. It operates 600 cargo ship and manages terminals at multiple ports. With 90% of global trade moving by sea, and nearly 20% of that carried by Maersk, the potential for disruptions seems obvious.

Petya forced Maersk to shut down its systems to contain the attack. Consequently, ports around the world were unable to process shipments. According to the New Zealand Herald, the Ports of Auckland felt the effect early on.

“Until this is resolved Maersk have no means of receiving load lists, discharge lists, or instructions for cargo release,” a port representative told the Herald.

Going by a message on the Maersk website, operations appeared to return to normal toward the end of the week. The company announced most of its terminals were operating again. Furthermore, it provided clients alternative methods to book new shipments.