The article underscores rising cyber threats, systemic weaknesses such as legacy systems and third-party dependencies, and the economic fallout of disruptions. It concludes that strengthening digital resilience particularly through secure, integrated Cargo Community Systems are essential to safeguarding trade continuity and ensuring future-ready logistics operations.
The prelude
A leading terminal operator in Australia experienced a widespread disruption, which led to a halt of container as well as landside freight movements for multiple days. This breach was a reflection of third-party vendors having access to a rather secure environment that opened a larger vulnerability or a loophole in the overall supply chain industry.
Globally interconnected operations, real-time data sharing, and the digitisation of core logistics infrastructure have delivered immense efficiency and visibility benefits, but they have also opened doors to cyber adversaries. This is particularly evident in the Australian logistics industry, where a major cyber incident earlier this year brought port operations to a grinding halt, exposing systemic vulnerabilities that resonate across both maritime and air cargo sectors.
In November 2023, one of Australia’s largest terminal operators was forced to suspend operations across multiple major port terminals, including key facilities in Sydney, Melbourne, Brisbane, and Fremantle, after detecting unauthorized access to its networks.
The breach prompted a precautionary shutdown of systems — effectively disconnecting critical freight management infrastructure from the internet to contain the threat. This interruption affected around 40 per cent of the nation’s maritime freight handling and left an estimated 30,000 shipping containers stranded, with knock-on consequences for importers, exporters, and downstream logistics partners.
The incident highlights how deeply cyber risk can disrupt physical supply chains. In this case, disconnecting digital systems typically seen as a defensive measure had the immediate consequence of halting cargo movements, illustrating the paradox of modern logistics: digital dependency amplifies operational risk across both information and physical domains.
Why Logistics Is a High-Value Target?
The logistics industry has become increasingly software dependent. Warehouse management systems, terminal operating systems, fleet tracking, port community systems, and air cargo data exchanges all rely on continuous connectivity and integration across a vast third-party ecosystem. These interconnected IT and operations technology (OT) systems expand the attack surface for sophisticated threat actors including cybercriminals driven by financial incentives, state-sponsored operators, and hacktivists.
Recent industry reporting illustrates the magnitude of the threat: maritime ransomware incidents have surged, with maritime-focused ransomware up 467 per cent year-on-year and transportation breaches increasingly commonplace. The average cost of a data breach in transport sectors is more than US$4 million, a figure that does not include the broader economic impact of disrupted operations, delayed deliveries, or lost customer trust.
In 2025, supply chain attacks generally have doubled compared to historical averages, according to overarching threat landscape analyses, with threat actors exploiting zero-day vulnerabilities, phishing, and ransomware to infiltrate supply chain partners. Even if the logistics sector is not the most attacked category, the cascading effects of disruption are disproportionately large because logistics underpins global trade.
Global Consequences of Cyber Supply Chain Disruptions
The Australian incident is not isolated. Maritime and air cargo systems worldwide are woven into international trade networks that move goods worth trillions of dollars annually. In air cargo, for example, more than 62 million metric tons of freight are transported each year, representing a substantial portion of global trade value and these operations depend increasingly on digital data exchanges and cybersecurity protocols to maintain safe, predictable flows.
International bodies like the International Air Transport Association (IATA) emphasise the strategic importance of robust cyber risk management frameworks for aviation and air cargo operations, including guidance, standards, and collaborative forums to share threat intelligence and best practices.
Likewise, the World Bank’s global supply chain stress metrics underscore the sensitivity of freight networks to disruptions whether from pandemics, trade bottlenecks, or cyber events highlighting how critical supply chain performance is to economic stability.
It is also worth noting that cyber threats are a recognised predominant risk for supply chains in 2025 and beyond, with industry risk assessments ranking cybersecurity incidents alongside geopolitical and climate risks due to their potential to bring operations to a sudden halt and trigger cost escalations far beyond direct IT costs.
Broader Industry and Economic Impacts
When core logistics infrastructure falters, the immediate effects ripple through the entire economy. Port downtime delays imports and exports, disrupts just-in-time inventory replenishment, slows manufacturing, and increases freight and storage costs. In the Australian instance, retailers and manufacturers experienced delayed shipment deliveries just weeks before peak seasonal demand, illustrating how cyber risk can compound other business pressures.
The impact on air cargo is similarly profound. While IATA’s cybersecurity initiatives are focused on harmonised risk management and standards development, the reality is that digital supply chains are only as resilient as their weakest links. Cyberattacks against third-party vendors or data partners can cascade across air cargo operations, affecting everything from cargo manifest systems to secure communication channels delaying flights, customs clearance, and freight handling.
Beyond financial losses, breaches erode customer confidence and can trigger compliance penalties under emerging cybersecurity regulation. They also demand costly incident response, forensic investigation, and remediation activities. In sectors where profit margins may be thin, these unplanned expenditures can materially damage competitiveness.
Underlying Vulnerabilities: People, Processes, Technology
Several systemic vulnerabilities contribute to heightened cyber risk in logistics:
- Legacy systems that were not designed with modern cyber threats in mind. Many terminals and cargo handling systems integrate older hardware or software that cannot easily be patched or segmented.
- Third-party dependencies, where a compromise of a smaller supplier can yield access to more critical systems.
- IoT proliferation, with sensors and devices adding new attack vectors for threat actors.
- Insufficient cybersecurity culture and training, where human error remains a leading factor in breaches.
These issues are not unique to logistics but are amplified by the sector’s reliance on real-time data flows, interconnected nodes, and schedules that tolerate little downtime.
International Standards and Regulatory Response
Industry associations, such as IATA in aviation, are actively developing cybersecurity frameworks, guidance materials, and collaborative forums to build resilience against evolving threats. These initiatives include risk-based approaches to security management and standardised information sharing mechanisms that benefit the broader logistics ecosystem.
Similarly, global development organisations like the World Bank have stressed the need to protect digital supply chain infrastructure as nations digitise port and freight operations.
Yet despite these efforts, regulatory frameworks lag behind the pace of digital transformation, and investment in cybersecurity often competes with other operational priorities.
Role of Multimodal Cargo Community Systems to tackle cyberthreats
Multimodal Cargo Community Systems strengthen cybersecurity by unifying stakeholders on a secure, standards-based platform. By enabling controlled data exchange, real-time visibility, and authenticated access, these systems reduce vulnerabilities caused by fragmented processes.
Cargo Community Systems offer centralised monitoring to detect anomalies early, while harmonised communication protocols limit opportunities for breaches across transport modes. With integrated governance, audit trails, and automated compliance checks, Cargo Community Systems create a resilient digital ecosystem that safeguards critical logistics operations and ensures end-to-end security, enhancing trust, continuity, and operational stability across the multimodal supply chain.
In conclusion
The escalating wave of cyber incidents across global and Australian logistics networks underscores a decisive truth: supply chains are only as strong as their digital resilience. As ports, airports, and multimodal hubs continue to modernise, the stakes of cybersecurity grow exponentially, making proactive protection an operational imperative rather than an optional investment.
Strengthening governance, improving data integrity, and adopting secure digital ecosystems are now essential to safeguarding trade continuity. Ultimately, building a future-ready logistics sector demands sustained commitment to advanced technologies, collaborative security frameworks, and continuous innovation because only through smart, secure digital adoption can the industry stay resilient against evolving cyberthreats.
Learn more on Multimodal Cargo Community System
Technologies
Success Stories
Articles
Newsletter
Testimonials
Industry Initiatives
