Ports and marine shipping companies are adopting new technologies and automizing operations which has increased the risk of cyberattacks that could disrupt trade. In 2020, Naval Dome, a maritime cybersecurity company, estimated that cyberattacks on the maritime industry’s operational technology (OT) systems increased by at least 900% over the 3 years prior with more than 500 major cyber security breaches.[1] In 2023, there were 46 cyber incidents in the United States reported to the Maritime Cyber Readiness Branch (MCRB), which is likely an underestimate as many incidents go unreported.[2] The impact of these cyberattacks could be detrimental to stakeholders of all supply chains as 75% of U.S. freight trade (by volume) is dependent on the maritime sector[3] and their operations generate over $5.4 trillion for the U.S. economy.[4]
Cyberattack Risks and Solutions According to a 2021 report published by the Atlantic Council, an international affairs think tank, cyber-attackers can be categorized into the following groups based on motivation:
These attackers target a wide range of parties involved in the movement of goods from the private sector, including maritime logistics and technology service providers, to government agencies, including port operations. Their methods of attack focus on infiltrating an organization’s systems, networks or accounts via Global Positioning Systems (GPS) and/or Automatic Identification Systems (AIS), OT systems, Industrial Control-Systems (ICS) devices, human targets and Information and Communications Technology (ICT) systems.[6] The United States Coast Guard’s 2023 Cyber Trends and Insights in the Marine Environment report lists various tactics and techniques utilized to gain access to an organization, including phishing/spoofing, password cracking, software attacks (including ransomware), business email compromise and structured query language (SQL) injection.[7] U.S. ports may be vulnerable to these attacks due to the multiple stakeholders involved in port operations, and the sharing between ships and ports of network connections and USB storage devices, among other technology, as advised by the Department of Transportation Maritime Administration.[8] The consequences of a cyberattack could include access to sensitive information (which could lead to financial extortion or theft of cargo), reduced operation capacity or closure of ports, physical damage to equipment or cargo, safety risks to employees and others and reputation damage.[9] For example, GPS/AIS jamming and spoofing could make it difficult for ships to know their current location and the direction of their route, causing the ship to be lost and, as a result, delayed. Likewise, it could also make it difficult for the destination port to estimate times of arrival for ships when planning/managing port traffic. Ways to mitigate the risk of attacks include password policies (on length, complexity, history and expiration), multi-factor authentication, user training (for employees and relevant external entities), software updates (to have supported operating systems, patched software and antivirus/protection from malware),[10] monitor network traffic (try to separate internal entities from external), user account management and access controls for third parties, audit systems and information sharing between organizations, government agencies and other stakeholders in the supply chain about risks and incidents.[11] In addition to the methods to mitigate the risk of attacks, the Department of Homeland Security makes high-level recommendations on mitigating the impact of attacks for stakeholders in the industry through their U.S. Maritime Trade and Port Cybersecurity report, including:
Recent Examples of Cyber Risks to Infrastructure The most recent, major cybersecurity issue that impacted global trade operations was in July 2024 after a computer update administered by the cybersecurity company Crowdstrike disabled Microsoft Windows systems worldwide, creating disruptions for businesses, airports and port facilities.[14] The inability to use essential systems caused thousands of flights, including those dedicated to air freight, to be grounded or delayed. The Ports of Houston, New York and New Jersey, and Los Angeles also reported disruptions.[15] Although the Crowdstrike incident was not an intentional attack, but a faulty software issue, a cyberattack with similar widespread consequences occurred in 2017 when multiple businesses, including Maersk the global shipping company, fell victim to malware cyberattacks. For Maersk, this caused the computer system across several ports to be down, including the Port of Rotterdam, the Port of New York & New Jersey and a container facility at Jawaharlal Nehru Port.[16] Some cyberattacks have not been as widespread but have still caused major disruptions in trade, such as the ransomware attack on DP World Australia, a port operator which manages nearly 40% of Australia’s imports and exports, that interrupted operation for three days and caused cargo traffic in November 2023.[17] The Port of Lisbon also experienced ransomware attacks in 2023 that took down its internal computer systems and allowed the cyber-attacker to steal sensitive information such as financial reports, budgets, cargo information, ship logs and port documentation.[18] Initiatives to Mitigate Cyber Risk in the United States Due to the increasing threat of cyberattacks and the potential widespread impact, on 21 February 2024, the Biden-Harris administration announced actions to strengthen the cybersecurity of American ports through an executive order that requires all ports to comply with international and industry recognized safety regulations, such as mandatory reporting of attacks to the Coast Guard Cyber Command. In addition, government entities, like the Supply Chain Resilience Center announced in November 2023 and the multiple Cyber Security Operations Centers (CSOC) at certain ports, are intended to reinforce port security.[19] For example, the Port of Los Angeles CSOC stopped 750 million cyber intrusion attempts in 2023.[20] Lastly, under the Investing in America Agenda, $20 billion will be invested in strengthening U.S. port infrastructure. As a subset of the discussion on trade infrastructure cybersecurity, there is concern that the equipment at ports, such as the ship-to-shore cranes moving cargo on and off ships, will be targets of cyberattacks because about 80% are made in China with Chinese software. As part of the 21 February executive order, the Coast Guard was instructed to publish a maritime security directive outlining cyber risk management of ship-to-shore cranes from China. The Biden administration supplemented these policies with a 25% tariff on ship-to-shore cranes from China. This has also prompted the House of Representatives to propose port crane security legislations, the most recent being the Port Crane Security and Inspection Act of 2023, that would limit the use of foreign cranes and require CISA to inspect foreign cranes for potential security vulnerabilities.[21] Under the incoming Trump administration, increased protective measures from cyber threats on the maritime sector are likely as they would mirror actions taken during his first administration[22] and would align with his overall stance on U.S.-China relations.[23] Mike Waltz, Trump’s current choice for the National Security Advisor, has already expressed that “we need to start going on the offense and start imposing, I think, higher costs and consequences to private actors and nation-state actors that continue to steal our data.”[24] Moving Forward As technology advances, it is important that policies and protocols of the trade industry evolve in parallel. New developments, including smart port technology and AI-enabled systems, may improve efficiency, however, they may also create greater exposure to the threat of cyber risks that would cause further disruptions.[25] Cybersecurity is crucial for the maritime industry as it may simultaneously face other disturbances, including dangerous weather conditions, pirate attacks, geopolitical-related events and other threats to the movement of goods.[26] These concerns do not only apply to the maritime sector, but to all industries and to businesses of all sizes because not only could there be an impact to your business operations as a byproduct of attacks on the maritime industry, but your company may be directly targeted. The best way to protect your company is to be prepared. Most of the methods to mitigate the risk and/or impact of cyberattacks listed above for the maritime sector, such as developing and implementing a company-specific cybersecurity policy, can be applied to your company and having cybersecurity insurance can also help protect against financial loss. In addition to the reports linked above, various U.S. government agencies provide many resources and services including:
[1]Maritime Cyber Attacks Increase By 900% In Three Years Hellenic Shipping News (21 July 2020) [2]Cyber threats to watch out for in the Marine Transportation System United States Coast Guard [3]U.S.-International Freight Trade by Transportation Mode Bureau of Transportation Statistics [4]Biden to sign executive order on US port cybersecurity targeting Chinese-manufactured shipping cranes CNBC (21 February 2024) [5]Introduction: Cooperation on maritime cybersecurity Atlantic Council (4 October 2024) [6]Ibid. [7]2023 Cyber Trends and Insights in the Marine Environment report United States Coast Guard, pages 13 and 38-39 [8]Biden to sign executive order on US port cybersecurity targeting Chinese-manufactured shipping cranes CNBC (21 February 2024) [9]Port Facility Cybersecurity Risks Cybersecurity & Infrastructure Security Agency [10]Why Ports Are at Risk of Cyberattacks Dark Reading (9 September 2022) [11]2023 Cyber Trends and Insights in the Marine Environment report United States Coast Guard, pages 15 and 42-51 [12] U.S. Maritime Trade and Port Cybersecurity Department of Homeland Security, page 5 [13]Introduction: Cooperation on maritime cybersecurity Atlantic Council (4 October 2024) [14] Ibid., page 4 [15]Microsoft, CrowdStrike IT outage hits global supply chain, with air freight facing days or weeks to recover CNBC (19 July 2024) [16]Massive malware attack: Who's been hit CNN (28 June 2017) [17]Australian ports resume some operations after major cyberattack CNN (13 November 2023) [18]2023 Cyber Trends and Insights in the Marine Environment report United States Coast Guard, pages 13 [19]Biden to sign executive order on US port cybersecurity targeting Chinese-manufactured shipping cranes CNBC (21 February 2024) [20]Biden admin, U.S. ports prep for cyberattacks as nationwide infrastructure is targeted CNBC (17 April 2024) [21]Biden to sign executive order on US port cybersecurity targeting Chinese-manufactured shipping cranes CNBC (21 February 2024) [22]Trump administration rolls out plan to secure maritime sector against cyber threats The Hill (5 January 2021) [23]What Trump Has Promised on China in a Second Term PBS (27 November 2024) [24]Why Trump Security Pick Wants to Make Cyber Attackers 'Pay' Cyber Magazine (16 December 2024) [25]2023 Cyber Trends and Insights in the Marine Environment report United States Coast Guard, pages 29-30 [26]Introduction: Cooperation on maritime cybersecurity Atlantic Council (4 October 2024) China’s Expanding Influence in Africa: The Role of the Belt and Road Initiative and the FOCAC Summit10/25/2024
Introduction In the past two decades, China has become the top bilateral trading partner for sub-Saharan Africa. The International Monetary Fund (IMF) reports that China accounts for about 20% of the region’s exports and 16% of its imports.[1] In 2023, trade between China and Africa reached a record $282 billion.[2] Africa primarily exports primary commodities—metals, minerals, and fuel—making up roughly 60% of total trade, while 94% of Africa's imports from China are manufactured goods, including telecommunications equipment and textiles.[3] Economic cooperation continues to strengthen through the Forum on China-Africa Cooperation (FOCAC) and the Belt and Road Initiative (BRI). FOCAC Summit The FOCAC is a partnership platform initiated by Chinese President Xi Jinping to enhance understanding, build consensus, strengthen friendships, and promote cooperation between China and African nations. Since its inception in 2000, the FOCAC Summit has been held every three years and is a key component of China’s diplomatic strategy toward the Global South, showcasing its commitment to supporting developing nations. Through this forum, China seeks to reshape global trade and geopolitics to increase its influence compared to the United States and its allies. Beginning with the 2003 summit, China has gradually expanded preferential tariffs for African countries, reaching zero tariffs on 98% of trade from 33 African nations by 2023.[4] China has also initiated programs to aid in the development of infrastructure. For example, in 2006, China announced the establishment of ten Agricultural Technology Demonstration Centers, later increased to thirty in 2009, throughout Africa to support Africa’s agricultural modernization in collaboration with the UN Food and Agriculture Organization (FAO). That year, China also introduced a $5 billion China-Africa Development Fund to facilitate infrastructure building in Africa, including the development of six special economic zones in five countries: Zambia, Nigeria, Ethiopia, Mauritius, and Egypt.[5] In 2023, Xi pledged $50.6 billion in new financing over the next three years, emphasizing a shift from investments in infrastructure projects to initiatives that support local manufacturing and exporting opportunities from Africa.[6] The Belt and Road Initiative In 2013, President Xi introduced the BRI, which aims to enhance regional connectivity and embrace a brighter economic future by building infrastructure and broadening trade links across Asia, Europe, and Africa. The BRI provides funding to Africa and countries in other regions. By the end of 2023, over 200 BRI cooperation agreements have been signed with more than 150 countries across Asia, Africa, Europe and Latin America and thirty international organizations. By funding infrastructure projects in developing countries, China aims to benefit from increased trade facilitated by new infrastructure, be strategically less dependent on sourcing materials from the United States and its allies, and establish alternative routes for transporting natural resources.[7] For several years, China prioritized large-scale infrastructure projects, including the Standard Gauge Railway in Kenya and the Addis–Djibouti Railway in Ethiopia. According to the Global Development Policy Center of Boston University, nearly $170 billion has been lent to African countries from Chinese financial institutions between 2000-2022. (In recent years, lending has been at lower levels than what was seen in the 2010s.[8]) Global Perspectives on BRI Despite its popularity in developing nations, the BRI has faced criticism from leaders of advanced economies. One major concern is the initiative's lack of transparency, making it difficult to ascertain details about the loans, including their amounts, terms, contractor selection, and associated environmental and social risks.[9] China has been accused of engaging in "debt-trap diplomacy," where it imposes high-interest debt on countries that struggle to repay, thereby gaining leverage over them. In May 2019, then-U.S. Secretary of State Mike Pompeo criticized China for using "corrupt infrastructure deals" to gain political influence and for employing "bribe-fueled debt-trap diplomacy" that undermines good governance.[10] UNCTAD recently reported that 24 African countries have public debt exceeding 60% of their GDP, and twenty African nations face debt servicing costs that surpass 10% of their revenue.[11] Yet, numerous African leaders, politicians, and business elites have publicly challenged the narrative of “debt-trap diplomacy” and praised China’s development model to both Chinese and international audiences.[12] The Next Chapter in China-Africa Economic Relations Despite criticism and concerns regarding power imbalances and China's underlying motivations by Western countries, China continues to show commitment to strengthening ties with African nations through ongoing dialogue of the FOCAC summit and through BRI. In a 2025-2027 action plan released on 5 September, Chinese and African decision makers said they would “keep the global industrial and supply chains stable and smooth, oppose all forms of unilateralism, protectionism, and maximum pressure, and oppose erecting walls and barriers, decoupling and supply disruption”.[13] As China’s strong presence in African trade grows, the United States may risk losing opportunities with a region that is expected to be one of the quickest-growing economies in 2024.[14] Africa is not only a large source of raw materials for many manufacturers but a growing consumer market for exports. Many U.S. politicians, including U.S. Senators Chris Coons (D-DE) and James Risch (R-ID), have advocated deepening trade relations with Africa by supporting aid programs along with strategic partnerships and investments, such as the African Growth and Opportunity Act (AGOA), the Generalized System of Preferences (GSP) and Kenya Strategic Trade and Investment Partnership. In this evolving landscape, the U.S. faces the challenge of developing a coherent strategy to engage with African nations while addressing competition from China. To remain relevant, it must strengthen existing frameworks and adapt to Africa's changing needs. By fostering equitable partnerships and prioritizing sustainable development, the U.S. can build meaningful relationships in Africa and maintain its influence amid China’s growing presence.[15] The future of U.S.-Africa relations will depend on a collaborative approach that acknowledges Africa’s agency and potential as a key global player. Kayleigh Park [email protected] [1] Blanchard, B. (n.d.). China says 'fed up' with hearing U.S. complaints on Belt and Road. [2] Nyabiage, J. (n.d.). China-Africa trade hit US$282 billion in 2023 but Africa’s trade deficit widens, with commodity prices a key factor. [3] Boston University. China-Africa Economic Bulletin, 2024 Edition. [4] Yeping, China to give LDCs including 33 African countries zero-tariff treatment, move to boost trade prosperity. [5] Nanlu, L. (2015). Issue Brief . Beijing: United Nations Development Programme. [6] Dodwell, D. (n.d.). China-Africa summit a fitting showcase of Global South’s rise. [7] Li, Hackenesch. (n.d.) FOCAC 2024: Moving Away from Large Infrastructure Deals towards Normative Power of China. [8] Moses, O. (n.d.). 10 Charts to Explain 22 Years of China-Africa Trade, Overseas Development Finance and Foreign Direct Investment. [9] Christian Shepherd, V. C. (n.d.). China hosts African leaders to rekindle ‘Belt and Road’ outreach. [10] Blanchard, B. (n.d.). China says 'fed up' with hearing U.S. complaints on Belt and Road. [11] Dodwell, D. (n.d.). China-Africa summit a fitting showcase of Global South’s rise. [12] Cash. China is not pushing Africa into debt trap, South African president says. [13] Embassy of the People’s Republic of China in the Republic of Rwanda. The Characteristics of Chinese Path to Modernization [14] African Development Bank Group. Africa dominates list of the world’s 20 fastest-growing economies in 2024—African Development Bank says in macroeconomic report. [15] Léautier. In brief: The future of US-Africa trade and investment Navigating the Future: International Trade and Sustainable Port Infrastructure
Ports are the backbone of global trade, serving as vital hubs where goods from around the world converge and disperse. However, amidst their critical role in facilitating economic growth, ports also exert a significant environmental footprint which is coming into increasing focus as consumers favor a greener economy, and companies and governments alike react to these changing consumer demands.[1] This blog delves into the evolving landscape of international trade through the lens of sustainable port infrastructure and technology, exploring how innovation and collaboration are reshaping this cornerstone of global commerce. Importance of Ports in Global Trade and Environmental Challenges Seaports are gateways where ships, trucks, trains, and cargo converge, facilitating the movement of goods across continents. Seaports play a pivotal role in the interconnected network of global trade, particularly since the advent of containerization and globalization. In 2022, global containerized trade volumes reached 163 million 20-foot equivalent units (TEUs).[2] Additionally, seaports around the world manage approximately 80% of worldwide commerce in terms of volume and 70% in value terms.[3] Given the outsized role of seaports in global supply chains, it is important to consider their environmental impact.[4] In 2019, the largest three ports in the United States (Port of Los Angeles, Long Beach and New York and New Jersey) accounted for over 2.5 million tons of carbon dioxide equivalent emissions (CO2e).[5] This is equivalent to 595,005 gasoline-powered passenger vehicles driven for one year. [6] These emissions stem from various port activities including cargo handling, storage, and land transport. In terms of the impact of port activities on nearby communities, the U.S. Environmental Protection Agency (EPA) estimates that more than 39 million people in the United States currently live near ports; these people can be exposed to air pollution from diesel engines at ports and be at risk of developing asthma, heart disease, and other health problems.[7] Additionally, waterways and nearby communities also face significant impact by port activities. Ranging from wastewater released by ships to the pollution of water systems from oil spills or leaching of toxic paint additives from ship paint can cause health impacts on marine life and communities around ports. [8] Innovative Solutions Transforming Port Operations Advancements in technology offer promising solutions to mitigate these environmental impacts while enhancing operational efficiency:
Policy Considerations Achieving greater sustainability in international trade also requires the correct policy aimed at balancing growth with environmental stewardship.
By harmonizing minimum standards, providing financial incentives, promoting collaborative partnerships, and undertaking environmental assessments, policymakers can effectively steer ports towards a sustainable future. Conclusion Sustainable port infrastructure and the use of advanced technology are pivotal in mitigating the environmental impact of global trade while fostering economic growth and connectivity. By embracing renewable energy, digitalization, and smart port solutions, ports can enhance operational efficiency which can lower costs and expedite the movement of goods while reducing emissions and promoting environmental stewardship. Continued investment in green infrastructure and collaborative partnerships will be essential in navigating the complexities of international trade sustainably. As global trade continues to evolve, ports must be part of that evolution, demonstrating that growth and infrastructure needs can coexist with environmental responsibility in our interconnected world. [1] Sustainability as an integral part of trade compliance Deloitte [2] Review of Maritime Transport UNCTAD (2023) [3] Implementing Onshore Power Supply from renewable energy sources for requirements of ships at berth Applied Energy Volume 225 (1 December 2019) [4] Port sustainability and performance: A systematic literature review Transportation Research Part D: Transport and Environment Volume 72 (July 2019) [5] Issue Brief: Climate Change Mitigation and Adaptation at U.S. Ports Environmental and Energy Study Institute (2022) [6] Greenhouse Gas Equivalencies Calculator Environmental Protection Agency (12 March 2024) [7] National Port Strategy Assessment: Reducing Air Pollution and Greenhouse Gases at U.S. Ports U.S. Environmental Protection Agency (September 2016) [8] Ports Primer: 7.1 Environmental Impacts Environmental Protection Agency (14 December 2023) [9] Ocean waves to generate power at the Port of Los Angeles American Society for Civil Engineers (8 February 2023) [10] Greenhouse Gas Study International Maritime Organization (2020) [11] The Digital Port Port of Rotterdam [12] Role of a digital twin to improve the design and operations of ports Royal Haskoning DHV (7 August 2023) [13] Shore Power Port of Vancouver [14] Improvement of the sustainability of ports logistics by the development of innovative green infrastructure solutions Transportation Research Procedia Volume 45 (2020) [15] Partnerships and Projects International Maritime Organization [16] Member States International Maritime Organization |
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