Port operations collapse

Port operations collapse

According to the Australian Broadcasting Corporation's report on the 11th local time, due to a cyber security incident, the operations of Australia's second largest port operator "DP World" have been suspended. Starting from the 10th, the group's port cargo transportation in major cities such as Melbourne, Sydney, and Brisbane has been severely affected.

Many Australian ports have suffered cyber attacks, causing huge system failures in the ports, which directly caused these major ports to collapse and become unable to operate and were forced to close. The ports were closed and goods could not be transported normally, which instantly disrupted Australia's supply chain. A large number of goods cannot be transported normally, which may even affect the normal supply of goods in the market.

On the 12th, the group stated that it was testing the operation of the freight system and it was unclear when the port would resume normal operations.

DP World, the giant that suffered a cyberattack, controls a large share of Australia's shipping, accounting for 40% of Australia's container shipping volume. Currently, all that can be done in the port is unloading and loading, but because the technical system that allows trucks to share data with dock workers is shut down, these containers cannot leave the warehouse, which means that trucks cannot enter DP World’s terminal to pick up or unload containers. Imports and exports are expected to be severely delayed, with 30,000 containers stranded at the terminals.

According to Agence France-Presse, executives of Australia's Global Ports Group said in a statement on the 12th that the company has made "significant progress" in cooperation with cybersecurity experts and is testing the main system for restoring freight while assessing whether there is personal information. affected.

It is reported that cargo ships can still unload cargo, but trucks transporting containers cannot enter and leave the port normally. On the 12th, multiple Australian government departments and agencies held talks to continue discussing response measures. Australian police are investigating the cyber security incident, and operations at major ports have been restricted during the investigation.

According to Australian media reports, the terminal operator has not yet received a ransom demand, and no organization has claimed responsibility for this cyber attack.

Australia's Global Port Group said that after the network security incident occurred on November 10, it had promptly cut off the network connection to prevent illegal intrusions.

Dubai World Ports, the parent company of Australian Ports Worldwide, notified the Australian government on the 12th that the disruption to logistics services at the terminal may last for several days. It is understood that Australia Global Port Group is Australia's second largest port operator, managing nearly 40% of Australia's inbound and outbound cargo. The group has port operations in Melbourne, Sydney, Brisbane, Fremantle and other places.

But the good news is that after a successful system test on the evening of the 12th, normal operations resumed at 9 a.m. local time on the 13th. According to the BBC, DP World estimates that the four terminals will handle 5,000 containers on the 13th.

Australia's National Cyber Security Coordinator Darren Goldie said in a LinkedIn post, "While port operations have resumed, this does not mean this incident is over. The Australian government is continuing to work with DP World Australia to support management Any further consequences, including any ongoing disruption to Australia's supply chains. Investigations into the incident are ongoing and remediation efforts are likely to continue for some time."

Many of Australia's bulk commodity transactions rely on seaborne imports, but hacker attacks have caused system downtime, and the upcoming holidays have prevented the normal distribution of goods, which will have an impact on many Australians. Some experts had previously pessimistically predicted that it would take at least several weeks to resume normal operations at the port.

Paul Zalai, director of the Freight and Trade Alliance, said all imported containerized goods would be affected and could range from medical supplies to Christmas toys. He also revealed the full impact of cargo being held in thousands of containers at DP World's terminals across Australia will be felt in the coming days.

This means that many items needed for Christmas may not be available for purchase, and may even affect Australia's normal supply chain. Experts have warned that such shortages could lead to higher prices for related goods, while potential price increases could exacerbate Australia's already excessive inflation and could put pressure on the Reserve Bank of Australia to raise interest rates in December.

AMP chief economist Shane Oliver said a prolonged disruption to DP World's operations would be a supply shock that could force the Reserve Bank of Australia to take action on interest rates. He said: "If it's just a few days, I don't think the impact will be big, but if it's a few weeks, then it could be a supply shock, which tends to be inflationary, which will create a bigger problem and also give the RBA Dilemma.”