Ports to spend more on cybersecurity as digital investments rise
- As ports bid to become more competitive they are increasingly turning to digital upgrades and automation, but this presents new security challenges, according to a recent Frost & Sullivan report.
- Port Technology reports the key links in the supply chain will have to increase their security spending — particularly in regards to cyber risk — as they upgrade their land-side capacity and efficiency.
- The report predicts digital ports will be a "critical issue by 2023," and as a result port operators must boost indirect spend and improve supplier relationships to prioritize cybersecurity.
If there was one positive effect of the string of cyberattacks the world witnessed in 2017, it was that a clear message was sent: cybersecurity is no longer an option for supply chain professionals. In fact, it may even be up to those professionals to ensure cyber resilience.
Cyber risk is unlike any other digital threat previously left to the IT department, because it requires participation from every person, and every link in the value chain. Most companies today rely on third-party SaaS providers for pivotal business functions, and these maintain valuable and proprietary data. If this indirect supplier, however, is not secure — neither is the buyer.
The most recent disruption from a cyberattack sheds valuable insight upon the importance of security to ports. A.P. Moller - Maersk's systems were attacked in June, costing the company up to $300 million and completely shutting down the carrier's fully automated port terminal in Rotterdam. That same attack also targeted FedEx, which suffered days of disruptions to its TNT Express network, impacting European supply chains.
Previously, carrier and port provider choices were made mainly on cost or lead time advantages. But, when considering various service providers, procurement professionals also consider risk. Labor disruptions have led shippers to reconsider their options in the past, will cyberattacks do the same?
- Port Technology Digitization Spurs Port Security Spending
- Supply Chain Dive Cyberattack cost Maersk up to $300M
- Supply Chain Dive Cybersecurity is no longer an option for supply chains
- Supply Chain Dive How execs can quantify the ROI of cybersecurity: a model
Follow Edwin Lopez on Twitter