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.

A. As a shipper, do you find sufficient protection against loss and damage within the current regime of Hague-Visby Rules, as well as marine insurance coverage currently available in the market, in case your carriers are disabled by cyberattacks leading to the loss and damage to your goods? Why or why not? (6 Marks)

B. Solutions are being developed by international bodies in the maritime industry to try to improve cyber safety. Discuss what those solutions are, whether their improvements are sufficient, as well as any further improvements required. (6 Marks)

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)