• The latest ONS Business Insights Survey shows only 3.9 percent of transport and storage companies are concerned about cyber attacks on their supply chains — far fewer than manufacturers or retailers.
• Parcelhero warns this signals dangerous complacency, as supply chain hacks — like the recent Jaguar Land Rover cyber-attack — can cause severe disruption and financial loss across logistics networks.
• Despite rising risks, concern among transport firms has fallen from 4.5 percent in June to 3.9 percent in September, highlighting a growing gap in cyber awareness compared to other sectors.

The latest Office for National Statistics (ONS) Business Insights Survey has revealed that only 3.9 percent of transportation and storage sector companies (the category that includes logistics, parcels, haulage and warehousing firms) are concerned about cyber attacks impacting their supply chains over the next 12 months.

Far fewer transport and storage sector companies reported concerns about the impact of being hacked than any comparable business sector, says the home delivery expert Parcelhero.

Parcelhero’s Head of Consumer Research, David Jinks M.I.L.T., says: ‘Transport and storage businesses could be guilty of complacency over the potential impact of a cyber attack on them or one of their key partner companies. Only 3.9 percent of firms in this sector expressed concern about the impact of potential hacks when responding to the latest ONS Business Insights Survey. Compare that to 15.1 percent of manufacturers and 11.7 percent of retailers who expressed concern over the potential impact of a cyber attack on their supply chains over the next 12 months.

‘It’s not only the impact of a potential attack on their own systems that transport and storage firms should consider, although this is obviously very significant.

The question asked by the ONS was is your business concerned about cyber attacks “impacting supply chains over the next 12 months?” The impact of a key partner being hacked could also be extremely destabilising for transport and storage firms.

‘As just one example, the survey was held between 15-28 September, just when the full impact of a hack on Jaguar Land Rover (JLR) was headline news. JLR was hit by a cyber-attack on 31 August. The hack meant JLR produced no cars at all during September, and it is thought to have cost the company around £50m a week. The Government was forced to underwrite a £1.5bn loan guarantee to JLR to support its suppliers. Around 30,000 people are directly employed by JLR in the UK and a further 100,000 work for firms in its supply chain. JLR’s transport and storage sector partners, such as Rudolph and Hellmann – which serves JLR’s Electric Propulsion Manufacturing Centre and their Battery Assembly Centre – will likely be among the many companies and suppliers to have been impacted by the ongoing shutdown.

‘Likewise, the JLR hackers are believed to be the same group that was behind the recent Marks & Spencer and Co-op attacks. The M&S hack meant its online sales were disrupted for several months, which not only cost the company about £300m in lost operating profit but also had a considerable impact on those companies involved in its supply chains.

‘It’s also surprising to see that transport and storage sector firms were less worried about cyber attacks this September than they were back in June, the last time they were asked the question.

Then, 4.5 percent of companies in the sector said they were concerned about the issue. This is in contrast to their manufacturing and retail partners, whose worries about hacking have increased. Back in June, 9.1 percent of manufacturers and 8.1 percent of retailers said they were concerned about cyber attacks, compared to 15.1 percent and 11.7 percent last month.

Again, these responses may indicate a lack of awareness of the increasing dangers of a cyber attack on transport and storage companies’ own systems or those of their key partners.