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Issue 6 2017 - Freight Business Journal


Insurance Cyber attacks threaten the supply chain


Susanna Marsden of freight transport insurance specialist, TT Club sees a trend for cyber-attacks to target transport operators and infrastructure and looks at the practical issues in combating the risks.


Cybercrime has become increasingly commonplace within the freight industry, as evidenced by the recent ‘Not Petya’ cyber-attack on the Maersk Group and a similar virus affecting TNT amongst others. For logistics businesses, it is


yet another operational risk that they cannot afford to ignore. As well as relatively commonplace data theſts perpetrated shore- side, such incidents can also involve sophisticated actors aiming to impact operations onboard ships or in port. Oſten, identifying the attackers, whether criminal, malicious or politically motivated, is almost impossible. Ports, terminals and ships are


highly attractive to those seeking to smuggle contraband or target high-value cargos. Due to their role in moving people and cargo across borders, they are obvious targets for those seeking to profit from hacking or intending to cause maximum damage and disruption. For example, during the recent attack in late June,


76 global port terminals run by Maersk’s APM Terminals units were disrupted, resulting in widespread and severe delays as well as a significant financial impact for the company. The modus operandi of the


modern cybercriminal is now going beyond simply misleading terminal operators into thinking they are dealing with legitimate companies. Sophisticated hackers may now access and take control of operators’ IT systems and equipment, extracting or manipulating valuable data in order to cause economic or even physical harm. While the ‘Not Petya’ attack purported to be ‘ransomware’, a number of commentators have suggested that this was seeking to cause damage and disruption rather than to collect ransom payments. The increasing risk posed


by such cyber activity has the potential to affect the legal obligations owed under shipping contracts such as terminal operating agreements, bills of lading or charter parties.


In particular, evolving cyber risks may come to redefine the meaning of ‘seaworthiness’, with cyber ‘insecurity’ potentially rendering ports and berths legally unsafe for the purposes of charter party clauses. All supply chain stakeholders need to ensure they have a robust cyber response plan, which should include periodic stress testing of operating systems in order to measure their vulnerability to cyber-attacks and identify what additional system or process mitigation may be required. Technological advances in


terms of handling equipment and IT processing undoubtedly provide greater operational efficiencies and, to a degree, opportunities for all operators in the logistics supply chain to mitigate their exposure to theſt and fraud. Unfortunately, they may


also enable organised criminal organisations to use invasive cyber-technology, thereby posing


a greater risk to


legitimate trade and exposing counterparties


to the risk of


commercial and physical damage. A number of supply


chain players are beginning to implement processes based on accreditation to ISPS, ISO 27000 or similar governmental informational security standards, which will include robust firewalls, mail security, application controls, and effective data storage and


Davies Turner doubles Cumbernauld capacity UK


independent freight


forwarder Davies Turner has completed the expansion of its regional distribution centre at Cumbernauld. The development of an


additional 20,000sq ſt of warehousing with an eaves height of 10 m has doubled the capacity of the existing warehouse: the amount of racking has been increased and five powered dock- levellers and another two floor- loading doors have been added. Cumbernauld now has 3,500


pallet spaces and increased floor space for cargo handling and sortation. The secure 1.5 acre service yard also includes a clear span canopy of 4,500sq ſt to protect the loading area from the elements. Including the offices, the


extended facility has a total area of over 43,000sq ſt and a gated yard with palisade fencing, security alarms and CCTV protection.


The facility is also accredited


to BRC Storage and Distribution Standards for handling/ distributing foodstuffs and was given the highest AA rating in a recent audit. With the continual growth in Scottish food sector exports, is in an excellent position to support this very important industry over the coming years, says Davies Turner. Cumbernauld is one of Davies Turner’s strategically


placed


regional distribution centres covering the UK and Ireland. The other hubs are at Birmingham, Bristol, Dartford, Dublin, London Heathrow and Manchester – linked by overnight feeder services and with a further 14 satellite branches supporting the network. Davies Turner chairman


Philip Stephenson, said: “Ten years ago, we


commitment to the Scottish market when we moved to larger premises at Cumbernauld which


reinforced our


recovery. Yet one of the biggest threats remains human error, for


example disclosure of


passwords to third parties or use of infected USB sticks. Most supply chain processes


have been created with no real thought given to the threat of a cybercrime attack. Furthermore, reliance on bespoke applications may reduce the ability to withstand a potential breach by a sophisticated hacker or piece of malware (or require an upgrade to do so). The financial pressure on


all stakeholders in the current climate may mean that installing essential safeguards (such as virus protection) or fail-safes to disable remote control of equipment or processes in the event of an attack has not hitherto been regarded as a priority, particularly for smaller operators. It’s not just the supply


chain; every business has to be vigilant in responding to an ever-changing threat. However, according to data released by Accenture, while 85% of organisations intend to incorporate supply chain digitalisation in the next 12 months, only 50% have aligned risk management with cyber security. The race is on to increase


industry awareness and ensure that there are adequate safeguards in place for both the human and technological risk factors.


is well situated in the Central Belt between Glasgow and Edinburgh and benefits from some of the best road connections in the UK. Soon aſterwards we invested in narrow aisle racking in the building which quickly filled with new and existing business. “We were then able to offer


storage and distribution services as well as space for rapid transit freight. A decade on, we acquired


the freehold in Cumbernauld plus some adjoining land and now own a much expanded facility operating under BRC, AEO and Type A customs bonded status. “This is a much-needed


extension of our surface freight operations in Scotland and further proof of Davies Turner’s continuing commitment to Scottish exporters and importers. It coincides with the Group’s plans to expand and upgrade our premises at Glasgow airport.”


Davies Turner in Scotland - a clarification


The article in the Scotland


feature headlined ‘Business is booming – but there’s a sting in the tail’ contained a misleading typographical error about Davies Turner’s activities in Scotland. Davies Turner has NOT


recently closed its facility in Cumbernauld.


The company


has in fact shut its small office at Edinburgh airport and


concentrated its ocean freight and overland / contract logistics services Scottish activities on its facility in Cumbernauld. Airfreight services, operated


as Davies Turner Air Cargo brand are concentrated at Glasgow airport, where it is also planning to upgrade and expand its premises. FBJ apologies for any confusion caused.


TT Club and its Russian partner Panditrans is providing insurance cover risk management services to Russian start-up freight


///NEWS Reducing the risk in Russia


forwarder, Deliver (www. deliver.ru) - an online transport operation that is among the first in the country to implement an ‘Uber-style’ mode of service.


News Roundup


Developer Four Ashes is holding a public consultation on its planned rail freight interchange in South Staffordshire. The strategic West Midlands Interchange is being proposed for a 297-hectare site at Four Ashes, near to Junction 12 of the M6 and adjacent to the West Coast Main Line.


Road & Rail


DFDS is setting up a road service office in Vilnius to handle part and full loads to and from the UK. It will also offer an express service between Lithuania and Germany, Italy and other countries as well as full loads and special cargoes. Loads picked up in Lithuania on Friday can be delivered throughout the UK on Wednesday. DFDS has transport centre partners in Basildon and Kettering.


DB Schenker, MAN and Hochschule Fresenius are to receive €2 million of funding from the German Federal Ministry to develop networked truck convoys. The project will run from June 2017 to January 2019. Initially the partners will test truck convoys on the A9 autobahn for several months to analyse their suitability and safety in real traffic scenarios.


Espace has launched an Express PLUS 1 service, a heavily discounted semi-express service by co-loading two express shipments on the same van. The Express PLUS 1 service takes an extra day to deliver the shipment and complements Espace’s dedicated ‘Freight Emergency Service’. Express Plus offers a money back guarantee.


Northern Ireland-based Woodside Group has joined the Pallet-Track network. The Group, which includes Woodside Haulage, Woodside Distribution, Woodside Motorfreight, and All Route Shipping and based in Ballynure, Co. Antrim, will cover the Northern Ireland postcodes on behalf of the 80-plus strong Pallet-Track network.


DSV UK is investing in 50 new rigid 7.5 and 18.0 ton Volvo trucks to replace the existing fleet and increase total number of vehicles based in Purfleet by six to handle growing volumes of domestic business. All the vehicles are fitted with tail liſts and have the latest Euro 6 engines to comply with London’s emission zone regulations.


Europa Road has invested £2 million in 23 new trucks - 11 new Range T artics, four Range D12 distribution rigids, seven new Range D18 rigids and one Range D26 rigid. All Europa’s new trucks have front, rear and in-cab cameras and each rigid has a load securing system.


Highways England has removed a 40mph speed limit on the last few miles of the A20 into Dover that has been plaguing drivers since 2015. The limit was imposed to allow upgrade works to be carried out in Dover town centre.


P&O Ferrymasters has achieved a top grade AA rating for its Europoort-based reefer trailer operation in a British Retail Consortium Storage & Distribution audit for the revised Issue No. 3 standard. The independent audit covers the transport of chilled, frozen and temperature-controlled packed food products by the Europoort reefer trailer fleet, which serves Benelux, Germany and the UK.


The new Forth road crossing officially opened on 30 August, said the Scottish government but was due to close again on 2-3 September for the Queensferry Crossing Experience, when members of the public – chosen by ballot - have the unique opportunity to walk across it. From 6 September onwards the bridge will re-open to traffic with no pedestrian access.


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