Escalating geopolitical instability in the South China Seas and The Red Sea are being seen as the root cause behind a rapid rise in cyber-attacks on commercial shipping, as well as a sharp increase in cyber-assisted piracy.
“The risk has escalated significantly in the past year due to heightened geopolitical tensions and increased cyber capabilities of threat actors…The average cost per data breach now exceeds $545,000 for a shipping organization,” says Freight Right Global Logistics CEO Robert Khachatryan.
According to C. Todd Doss, Senior Managing Director at Guidepost Solutions: “Over the past year, these risks have escalated notably. Reports indicate that cyber-attacks on maritime infrastructure and vessels increased by over 20% in 2023 compared to the previous year .”
He added that maritime ransomware attacks have surged by around 30 percent and that high-profile incidents are now impacting major port operators and shipping companies, leading to significant disruptions and financial losses. Israeli cybersecurity specialist Naval Dome also reports a 400 percent surge in attempted hacks since February 2020, coinciding with the maritime industry’s increased reliance on technology.
Twenty-First Century pirates are becoming increasingly cyber-literate and are already using cyber-attacks to enable them to board and capture merchant vessels. This not only places crews in danger and exposes the ships’ owners to significant loss, but can also disrupt the global supply chain.
Attacks, hijackings and theft
“Commercial ships are exposed to significant risks when tracked via communication systems, such as espionage, theft, sabotage, and economic disruption…Real-time tracking enables pirates and criminals to identify and target vulnerable ships, leading to attacks, hijackings, and thefts,” says Doss.
According to Khachatryan: “Commercial ships’ communications systems can be exploited for espionage, allowing malicious actors to gather sensitive information on cargo, routes, and destinations. Tracking systems can be manipulated to facilitate theft by revealing the location and movement of high-value shipments.”
He added that last year saw a significant rise in cargo theft incidents that can partly be attributed to cyber vulnerabilities. According to CargoNet, a Verisk company, cargo theft incidents increased by over 57% in 2023 compared to the previous year.
Key maritime cyber hotspots now comprise the South China Seas, the Red Sea, the Gulf of Guinea, and the Strait of Hormuz. The South China Sea is a prime target for espionage due to its high traffic and contested waters. According to Guidepost Solutions, the Gulf of Guinea, already notorious for piracy, has seen increased cyber activities aimed at tracking and targeting ships. The Strait of Hormuz, a critical chokepoint for global oil shipments, also faces heightened cyber threats amid geopolitical tensions.
“Growing geopolitical tensions have made the Red Sea another critical area for maritime cybersecurity. The Suez Canal, a vital shipping route, has seen increased cyber threats aimed at disrupting global trade,” says Khachatryan.
