Transport & Storage Underestimating Cyber Attack Impact

A new ONS survey reveals only 3.9% of transport & storage sector companies say they are concerned about the impact of a cyber attack over the next 12 months. The home delivery expert parcelhero warns the sector must not get complacent about the dangers of being hacked. The latest Office for National Statistics (ONS) Business Insights Survey has revealed that only 3.9% of transportation & storage sector companies (the category that includes logistics, parcels, haulage and warehousing firms) are concerned about cyber attacks impacting their supply chains over the next 12 months.

Far fewer transport & storage sector companies reported concerns about the impact of being hacked than any comparable business sector, says the home delivery expert Parcelhero. Parcelhero's Head of Consumer Research, David Jinks M.I.L.T., says: 'Transport & storage businesses could be guilty of complacency over the potential impact of a cyber attack on them or one of their key partner companies. Only 3.9% of firms in this sector expressed concern about the impact of potential hacks when responding to the latest ONS Business Insights Survey.

Compare that to 15.1% of manufacturers and 11.7% of retailers who expressed concern over the potential impact of a cyber attack on their supply chains over the next 12 months. 'It's not only the impact of a potential attack on their own systems that transport & storage firms should consider, although this is obviously very significant. The question asked by the ONS was is your business concerned about cyber attacks "impacting supply chains over the next 12 months?" The impact of a key partner being hacked could also be extremely destabilising for transport & storage firms.

'As just one example, the survey was held between 15-28 September, just when the full impact of a hack on Jaguar Land Rover (JLR) was headline news. JLR was hit by a cyber-attack on 31 August. The hack meant JLR produced no cars at all during September, and it is thought to have cost the company around GBP50m a week.

The Government was forced to underwrite a GBP1.5bn loan guarantee to JLR to support its suppliers. Around 30,000 people are directly employed by JLR in the UK and a further 100,000 work for firms in its supply chain. JLR's transport & storage sector partners, such as Rudolph and Hellmann - which serves JLR's Electric Propulsion Manufacturing Centre and their Battery Assembly Centre - will likely be among the many companies and suppliers to have been impacted by the ongoing shutdown.

'Likewise, the JLR hackers are believed to be the same group that was behind the recent Marks & Spencer and Co-op attacks. The M&S hack meant its online sales were disrupted for several months, which not only cost the company about GBP300m in lost operating profit but also had a considerable impact on those companies involved in its supply chains. 'It's also surprising to see that transport & storage sector firms were less worried about cyber attacks this September than they were back in June, the last time they were asked the question.

Then, 4.5% of companies in the sector said they were concerned about the issue. This is in contrast to their manufacturing and retail partners, whose worries about hacking have increased. Back in June, 9.1% of manufacturers and 8.1% of retailers said they were concerned about cyber attacks, compared to 15.1% and 11.7 last month.

Again, these responses may indicate a lack of awareness of the increasing dangers of a cyber attack on transport & storage companies' own systems or those of their key partners.

'For more information about how technology is impacting supply chains, for better or worse, and the latest retail developments, see Parcelhero's report 'What's in Store for Stores' at https://www.parcelhero.com/research/shop-of-the-future

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