In late June 2017, AP Moeller Maersk was forced to shut down its container operations in the Port of Los Angeles as their IT systems were infected with a ransomware which caused disruption to the booking systems. The company suffered damages amounting to USD 300 million. Cyber-attacks targeting the maritime sector are growing rapidly across the world and in Asia. Hackers are narrowing their focus on companies in the sector which are seen as tempting targets due to a perceived lack of cyber security investment and potential for significant operational disruption.

C. Intensifying cyber-attacks is one of the results brought about by rapid digitalization in the maritime industry, which in fact also gives rise to other business risks including legal ones. As the legal officer of a global carrier, you are requested to write to your Managing Director identifying the legal risks on the use of technologies your company may be exposed to in its business operations. What will be the legal risks you identify? And what will your advice be to your Managing Director in mitigating those risks? (8 Marks)