The shipping industry’s reliance on interconnected technology also poses risks,according to Allianz Global Corporate & Specialty SE’s (AGCS) fourth annual Safety and Shipping Review 2016, which analyzes reported shipping losses of over 100 gross tons.
Cyber risk exposure is growing beyond data loss. There have already been a number of notable cyber incidents and technological advances including the “Internet of Things” (IoT) and electronic navigation means the industry may only have a few years to prepare for the risk of a vessel loss.
“Pirates are already abusing holes in cyber security to target the theft of specific cargoes,” says Captain Andrew Kinsey, Senior Marine Risk Consultant, AGCS. “The cyber impact cannot be overstated. The simple fact is you can’t hack a sextant.”
For the first time in five years piracy attacks failed to decline in 2015. South East Asian attacks rose, accounting for 60% of all incidents. Attacks in Vietnam surged year-on-year.
Meanwhile, piracy attacks, which increased slightly to 246 incidents last year, about 60 percent of which occurred in the South East Asia region. AGCS warned that there are also indications that pirates may be using cyber security holes to target specific cargoes.
Piracy evolves as potential cyber risk: There was an increase in the number of piracy attacks (246) during 2015. Progress continues in Africa with incidents down in Nigeria and Somalia, although the risk remains high.
Attacks in South-East Asia continue to increase, with the region accounting for 60% of global incidents and Vietnam a new hotspot. There are also indications pirates may be abusing holes in cyber security to target specific cargoes.
There have already been a number of notable marine-related cyber incidents. The industry needs more robust cyber technology in order to monitor the movement of stolen cargoes.