DP World cyber hack: QLD small business has a 40-foot container in limbo

A Queensland retailer whose container shipment was caught up in the DP World cyber attack says further delays are likely, as new transportation bottlenecks compound the disruption faced at major Australian ports.

DP World, an international logistics giant based in the United Arab Emirates, shuttered its Sydney, Melbourne, Brisbane and Fremantle ports on Friday in response to a major cyber attack.

The company, which is responsible for handling 40% of Australia’s maritime imports, resumed operations early on Monday afternoon.

That resumption will come as a relief to Australian businesses, which faced the prospect of a weeks-long port shutdown ahead of the busy Christmas shopping period.

But it will take time for those disrupted shipments to reach their final destination, heaping complexities and costs on small traders expecting containers full of goods.

Michelle Fiumara is the entrepreneur behind Cairns business Exotic Impressions, an importer and retailer of homewares, statues, and water features.

Exotic Impressions imports a 40-foot container full of goods once every three months, Fiumara told SmartCompany on Monday afternoon.

Shipments arrive in Brisbane before being transported by rail to Cairns, in a process which usually takes between five and seven days.

Fiumara said the latest shipment was already delayed by protected industrial action undertaken by port workers, “where it just sat out at sea because they couldn’t land it”.

“Then this cyber attack… Apparently it got into port on the 11th, so we’re still waiting”, said Fiumara.

“I spoke to my freight forwarder this morning actually, and she is none the wiser, and doesn’t know when when it will be released, because their computer system, they’ve got none at the moment,” she continued.

“Therefore containers can’t be offloaded off the ship.”

The status of Exotic Impressions’ container was still unclear on Monday afternoon, even after DP World confirmed operations had resumed.

Once the container is safely on land and prepared for rail transport to Cairns, Fiumara is bracing for further delays as businesses rush to secure their container’s place on limited rolling stock.

“Obviously, if there’s a backlog, usually a small business like myself will get pushed to the back of the queue,” she said.

“And the bigger businesses, big companies take priority, obviously.”

Placement on a train “could happen”, she said.

“They might ring me this afternoon and say, ‘Yep, we’ve got on the rail for Wednesday’, for example, but at this stage, I have no news.”

The resumption of DP World’s port activities has assuaged fears of a weeks-long delay, which could have seriously compromised retailers ahead of the Christmas shopping season.

Still, Fiumara expects the delay will cause hard conversations with customers.

“What I do is put out fires with everybody, you know. I have to explain to them once again why the shipment hasn’t turned up.”

Customs brokers worried for small business clients

Customs brokers, who work with small businesses to clear their imports through Australia’s customs regime, fear the cyber attack could result in extra costs for their clients.

Renee Wilson, director of Customers Brokers Australia, on Monday advised her clients to “keep a note of all delays, for all individual shipments as this may be required for insurance, detention, demurrage, and other claims”.

Missed delivery windows at warehouses and dishonoured delivery contract terms could add to business’ woes, she wrote on LinkedIn.

Others fear small businesses are particularly vulnerable to shipping delays.

A pandemic-era shift from warehousing to ‘just in time’ shipments means many businesses can expect significant headaches when a port shuts down, said Peter McRae, CEO of Platinum Freight Management.

“We have a high percentage of small to medium businesses that come to us and I already know that these small to medium businesses, and even microbusinesses will be doubly concerned,” McRae told SmartCompany on Monday morning.

“They don’t generally hold stock, they generally want to replace for when the other stuff is being sold.”

While businesses like Exotic Impressions may import an entire container full of goods, McRae said those that opt for ‘less than container load’ (LCL) shipments can expect to wait even longer for their imports to be separated and sorted at a freight depot.

“With these smaller shipments, that means it’s going to add extra time for them to get their goods as Christmas is coming,” he said.

Those delays and additional costs will only hamper businesses “pushed to the limit” by broader economic difficulties, McRae added.

“Overall, putting the issue of the ports away, there’s no predictability in the economy,” he said.

“Nobody knows what is going to happen, interest rates are going up. Are people really going to shut their wallets, are people going to continue [spending]?”