Americold Network Breach: Cold Storage Chaos
The recent network breach at Americold, a leading cold storage and logistics company, and the continuing fallout from the cyberattack on Expeditors International of Washington Inc., a global logistics company, underscore the crucial importance of maintaining secure networks in logistics operations. Both incidents have had significant consequences for the companies involved, as well as their customers and the global supply chain.
Ransomware Attacks Hit Logistics
The suspected ransomware attack on Americold led to the disruption of the company's operations, forcing them to cancel inbound deliveries and reschedule non-critical outbound deliveries. The company is still working to assess the intrusion, rebuild impacted systems, and recover data, with systems expected to be down until at least the following week.
Expeditors' Cyberattack Fallout
Similarly, the cyberattack on Expeditors had wide-ranging consequences. The breach forced the company to shut down most of its operating and accounting systems for three weeks, severely impacting its ability to ship freight and manage customs processing. The incident has already cost Expeditors $47 million in extra shipping container charges, with another $18 million spent on technology and services to recover from the attack. Furthermore, the company faces an ongoing lawsuit from iRobot Corp., a longtime customer, claiming breach of contract for shipping delays and lost business.
Strengthening Cybersecurity in Logistics
These two cases highlight the significant financial, operational, and reputational risks associated with network breaches in logistics operations. They also demonstrate the need for companies in the sector to prioritize cybersecurity measures and invest in robust, secure networks. This includes proactive measures such as employee training, risk assessment, and regular software updates, as well as reactive measures like incident response plans and backup strategies.
The Importance of Network Security
As cyberattacks on the shipping and logistics industries become increasingly common, companies must prioritize cybersecurity to protect their operations, customers, and the global supply chain. A single breach can have a cascading impact on supply chains, as evidenced by the Americold and Expeditors incidents, and thus it is vital for logistics companies to remain vigilant and proactive in their approach to network security.
