Cyber Risk Management: What Maritime Professionals Need to Know Now
The IMO January 2021 deadline for shipping interests to incorporate cyber risk management into their existing Safety Management Systems is fast approaching. It is critical that stakeholders understand their vulnerabilities. The IMO has issued MSC-FAL.1/Circ.3 guidelines on maritime cyber risk management that does a good job of outlining the many vulnerable systems within marine operations, including:1.Bridge systems;2. Cargo handling and management systems;3.Propulsion and machinery management and power control systems;4.
Ships: Deciphering the Autonomous Vessel Debate
By Captain Andrew Kinsey, Senior Marine Risk Consultant, Allianz Global Corporate & SpecialtyConfusion reigns in the ongoing debate on autonomous and remotely operated vessels. Before constructive dialogs can take place, the parameters of the discussion need to be agreed upon. Bottom line: in order to understand each other, we need to be speaking the same language.There are two recent publications that I strongly advise all maritime professionals review, as they offer valuable guidance and insight into this rapidly developing segment of the Marine Transportation Industry.
Workboats & SUB M: July 20, 2018 & Beyond
The bottom line is 46 CFR Subchapter M is drastically changing the landscape of towing operations within the United States. Some impacts we have identified and other will come to light as time passes.As the Subchapter M compliance deadline approaches on July 20, 2018, I have had the chance to discuss these new laws and their impact with a variety of Assured’s with diverse backgrounds and widely varying commercial tug operations.From my experience, there is still a great deal of confusion regarding the compliance requirements relating to Sub Chapter M.
The Best Options for Safe Mooring
The use of High Modulus Synthetic Fiber (HMSF) mooring lines, including Ultra High Molecular Weight Polyethylene (UHMWP) lines continue to make one of the most dangerous evolutions aboard ships safer. A 2017 UK Marine Accident Investigation Branch (MAIB) safety report, however, highlights critical areas where additional engineering review and crew training is required to help ensure overall crew safety. MAIB Report no: 13/2017 dated June 2017, addresses the finding from the March 2…
Trends in Heavy Lift Solutions
Advances and developments in heavy lift transportation are allowing shipyards to rethink how, and where, they build and maintain vessels. Utilizing this technology can help a yard expand its order book and improve its bottom line. The use of Self-Propelled Modular Transporters (SPMTs) in shipyards enables a facility to expand its operations in numerous ways, including new building, maintenance and repair or storage. These projects can range from straightforward to complex transport engineering assignments.
Global Shipping Feels Fallout from Maersk Cyber Attack
Global shipping is still feeling the effects of a cyber attack that hit A.P. Moller-Maersk two days ago, showing the scale of the damage a computer virus can unleash on the technology dependent and inter-connected industry. About 90 percent of world trade is transported by sea, with ships and ports acting as the arteries of the global economy. Ports increasingly rely on communications systems to keep operations running smoothly, and any IT glitches can create major disruptions for complex logistic supply chains. The cyber attack was among the biggest-ever disruptions to hit global shipping.
Shipping’s ‘Perfect Storm’ is Brewing -Allianz
Large shipping losses have declined by 50 percent over the past decade, mostly driven by the development of a more robust safety environment by ship owners, according to Allianz Global Corporate & Specialty SE’s (AGCS) fifth annual Safety & Shipping Review 2017. In 2016 there were 85 total shipping losses reported, down 16 percent from 101 a year earlier. The number of shipping incidents declined slightly year-on-year by 4 percent with 2,611 reported, according to the review, which analyzes reported shipping losses over 100 gross tons.
Cyber Vigilance at Sea: The New Norm
The risk of cyber attacks on vessels at sea continues to be significant, and it’s not going away any time soon. Each year, it seems, there are more and more reports of hacks that have resulted in loss of critical data, financial loss or problems with IT systems or shipborne systems functionality. Shipowners have been reluctant to share information on actual or attempted breaches for fear of being identified. However, there’s no shortage of examples of cyber attacks on vessels.
Panama Canal: Assessing the Risk & Reward
The Panama Canal’s impact on shipping routes and vessel sizes since it opened in 1914 is undisputed. This will continue with the opening of a third channel for larger vessels in 2016. This briefing examines the risk management impact of this expansion on the maritime industry. Why is the Panama Canal Expansion Significant? The Panama Canal’s $5.25 billion expansion increases the maximum vessel capacity and enlarges the overall volume of transported freight. Existing locks can handle ships up to 106 ft. wide, 965 ft. long, and 39.5 ft. of draft.
Cyber Threat Grows in Maritime
The shipping industry’s reliance on interconnected technology also poses risks,according to Allianz Global Corporate & Specialty SE’s (AGCS) fourth annual Safety and Shipping Review 2016, which analyzes reported shipping losses of over 100 gross tons. Cyber risk exposure is growing beyond data loss. There have already been a number of notable cyber incidents and technological advances including the “Internet of Things” (IoT) and electronic navigation means the industry may only have a few years to prepare for the risk of a vessel loss.
Risk & Reputation in the age of Disruption
Risks faced by today’s global businesses represent a combination of traditional concerns and newer threats that reflect changing times. The 2015 Allianz Risk Barometer, a survey of more than 500 corporate insurance experts and risk managers from 47 countries, revealed that issues related to business interruption and supply chain risk, natural catastrophes, and fire and explosion continue to top annual rankings. However, cyber risks, which include cyber crime, IT failures, espionage and data breaches, along with political risks were the most significant movers.
Mega Ships and Cyber Attacks Pose New Threats
Shipping losses continued their long-term downward trend with 75 reported worldwide in 2014, making it the safest year in shipping for 10 years, according to Allianz Global Corporate & Specialty SE’s (AGCS) third annual Safety and Shipping Review 2015, which analyzes reported shipping losses of over 100 gross tons. Losses declined by 32% compared with the previous year and were well below the 10-year loss average of 127. Since 2005 shipping losses have declined by 50%. More than a third of 2014’s total losses were in two maritime regions: South China…