Cyber-Attacks on Asian Ports Values $110 Billion

On Wednesday, a report stated that cyber-attacks on Asian ports possibly would cost around $110 billion or half the total global loss from natural catastrophes in 2018.

Meanwhile, cyber insurance is a growth market by insurance providers such as London-backed Lloyd’s.

Lloyd’s is concentrating on covering commercial risks. This is despite the take-up in Europe and Asia falling far behind levels in the United States.

On the flip side, the worst-case scenario in the report was grounded on a simulated cyber-attack. It has been disrupting 15 ports in Japan, Malaysia, Singapore, South Korea, and China.

According to Lloyd’s, some 92% or $101 billion of the overall estimated economic costs of such an attack are uninsured.

The figure was considered by simulating the effect of a computer virus carried by ships. It also scrambles cargo database records at the ports.

The report was by the University of Cambridge Centre for Risk Studies. It is on behalf of the Cyber Risk Management (CyRiM) project, in association with Lloyd’s.

Asia is home to nine of the world’s ten demanding ports. Moreover, Asia is a vital part of the supply chains for the world’s leading corporations in divisions from autos to industrial goods, clothing, and electronics.

The statement predicted that the world’s transport sector, including aerospace, would be afflicted the most. This is with economic casualties totaling $28.2 billion.

On the other side, manufacturing would take a $23.6 billion hit, while retail would face declines of $18.5 billion.

Countries that have relations to each port also are affected. Perhaps, Asian countries are the most damaged.

The strike would drop $26 billion in indirect losses, trailed by Europe with $623 million and North America with $266 million.

Concerns on the Growing Need of Technology and Automation

Lloyd’s Chief Executive John Neal stated, “We know that the biggest assets for companies are not physical, they are intangible.”

He also added, “With the increasing application of technology and automation, these risks will become even more acute.”

Elsewhere, Hutchison Port Holdings Trust, a Singapore Stock Exchange-listed container terminal operator active in Hong Kong and mainland China, has shown a minor decline in unaudited revenues.

The unrecorded earnings were from the nine months to September. The decline was led to a 5% fall in profit after tax.

HPH is an equity holder in quite a lot of container terminals in Hong Kong and mainland China.

The container terminals are Hong Kong International Terminals, the Cosco-HIT Terminals, and the Asia Container Terminals.

All of the locations of the terminal are in Hong Kong.

Meanwhile, in mainland China, the majority equity holders are in the Yantian International Container Terminals and the Huizhou International Container Terminals.

The firm also owns equity in a couple of Chinese river ports. In addition, it possesses numerous ancillary ports businesses.

Nine months to September 2019, revenues weakened from just over HK$8.48 billion to HK$8.45 billion.

The decline is 0.36% at the end of the nine months to September 2018 to the period of the nine months to September 2019.

At the time of writing, one Hong Kong dollar is worth 13 cents U.S.

Operating expenses sustained by HPH were mostly even. They are declining by about 1% from the HK$5.83 billion.

The weak phase was at the end of the nine months to September 2018. It was HK$5.77 billion in the same period this year.