Maritime cyber threats need to be taken seriously.

A report in Insurance Business magazine will be of interest to marine insurers and corporate risk managers worried about their exposure to cyber and geopolitical risks, particularly in the Middle East region. The article explains how the grounding of the MSC Antonia near the Eliza Shoals off Jeddah has “drawn attention to the increasing risks of cyber-physical attacks in the maritime sector, particularly in the Middle East and North Africa (MENA).” 

Analysis suggests the incident may have been caused by: “GPS jamming that compromised the vessel's navigational systems, leading to incorrect positioning data and the subsequent grounding.” 

Luke Pordham, assistant vice president at Lockton MENA, reportedly said: 

"For MENA, where critical trade routes like the Strait of Hormuz and the Suez Canal are essential to global commerce, the implications are particularly serious," he said, emphasizing the importance of addressing these risks proactively. 

"In our work with marine clients across the Middle East and North Africa, we continue to observe a significant disconnect between emerging cyber threats and existing risk transfer arrangements," he said, noting that this gap needs to close before the next incident occurs. 

"From voyage planning and propulsion control to port logistics and remote diagnostics, the reliance on connected systems has grown rapidly"  

According to Pordham: "A single vessel may interface with dozens of third-party systems across jurisdictions, each with different security standards. This interconnectedness means that a cyber incident affecting one operator can trigger global disruption, particularly if it impacts a critical shipping lane or chokepoint like the Suez Canal, Strait of Hormuz, or Panama Canal.”  

"Cyber attackers are no longer just breaching databases. They are actively interfering with navigational systems, manipulating Automatic Identification System (AIS) data, and threatening vessel control – raising the stakes from financial loss to physical catastrophe," he said. 

The maritime sector has witnessed other cyber-physical incidents such as the 2017 NotPetya malware attack on Maersk, which resulted in over $300 million in losses. 

"This incident was particularly impactful in the MENA region, affecting key ports such as Jebel Ali and Salalah," Pordham said. 

"AIS spoofing, GPS jamming, and satellite interference are increasingly frequent in areas of geopolitical tension – many of which are located in or near the MENA region. What differentiates the Antonia incident is the strong likelihood of cyber-induced physical loss – a vessel grounding potentially triggered by digital interference," he said. 

Regulatory expectations are also increasing in response to these risks. The article notes that maritime authorities are “tightening regulations to ensure greater cyber resilience.” 

"The IMO’s Resolution MSC.428(98) mandates the integration of cyber risk management into Safety Management Systems (SMS)," Pordham said. "In the MENA region, authorities in key maritime hubs such as the UAE and Saudi Arabia are increasingly aligning with international standards, while also launching their own national cybersecurity frameworks. 

"Port operators and shipping companies in the region are now expected to demonstrate active cyber risk management and incident response capabilities, both as part of regulatory compliance and as a commercial necessity. 

"The core concern isn’t just whether a traditional cyber policy will pay to restore data. It’s whether existing marine insurance programs will respond to physical damage, cargo delays, third-party liabilities, or environmental clean-up costs caused by a cyber event," he said. 

Russell’s ALPS marine solution helps companies and underwriters analyse trade patterns, model scenarios to quantify potential impacts, and identify aggregations that could have a direct impact on their business.