Ports cyber hack threatens supply chain ahead of Christmas

Christmas may be at risk after a horror cyber attack shut down Australian sea ports, stranding 30,000 shipping containers full of goods.

Christmas may be at risk after a major supply chain disruption due to a cyber attack shut down Australian sea ports last Friday.

DP World, which manages 40 per cent of Australia’s container shipments, was hit by the cyber attack late last week, and restricted access to ports in Sydney, Melbourne, Brisbane and Fremantle.

A cyber attack has crippled DP World, which manages 40 per cent of Australia’s container shipments. Picture: NCA NewsWire/Seb Haggett.

While ships could still offload and pick up containers, the technology systems that allow trucks to share data with the stevedore were turned off, meaning trucks could not get into DP World’s terminals to collect or drop off containers.

Imports and exports are expected to be heavily delayed as a result, with 30,000 shipping containers stranded on the docks.

Experts predict it could take weeks for the company to resume normal operations, leading to concerns about availability of imported goods.

“All imported containerised cargo will be impacted, which could potentially range from medical supplies through to toys for Christmas,” Paul Zalai, head of the Freight & Trade Alliance told The Sydney Morning Herald.

“The full impacts will be known in coming days in terms of the nature of goods stuck in the thousands of containers sitting idle at DP World’s terminals nationally.”

Toys could be among the items in shortage if the event results in a prolonged delay to unloading and unpacking imports. Picture: Ian Svegovc.

Experts have also warned that the potential for price rises would add to Australia’s already-too-high inflation rate, and could put pressure on the Reserve Bank of Australia (RBA) to increase interest rates in December.

AMP chief economist Shane Oliver said a prolonged disruption to DP World’s operations would be a supply shock which could force the RBA’s hand on interest rates.

“If it is a few days then I think we can get through without too much impact. But if it is weeks, however, it could be a supply shock and they tend to be inflationary. That would mark a bigger problem and then it also presents a dilemma for the Reserve Bank,” Dr Oliver told The Australian.

The delays could lead to price increases which could impact inflation and put pressure on RBA governor Michele Bullock to increase interest rates in December. Picture: NCA NewsWire/Martin Ollman.

On Sunday, DP World said it has made “significant strides” in addressing the incident but did not provide a timetable for when it would be ­operational.

“DP World Australia is working closely with government and private sector stakeholders to identify and retrieve sensitive inbound freight,” the company said.

No one has claimed responsibility for the attack and a ransom is yet to be received.

Home Affairs minister Clare O’Neill described the incident as “serious and ongoing”.