SEATTLE forwarding giant Expeditors International revealed it incurred US$60 million in costs in the first quarter following its cyberattack in February, reports IHS Media.
Expeditors said in a first quarter earnings suffered $40 million in incremental demurrage charges resulting from its inability to process and move shipments on time, said the company.
The company also racked up an additional $20 million in costs related to essentially cleaning up in the aftermath of the attack.
'The company incurred investigation, recovery, and remediation expenses, including costs to recover its operational and accounting systems and to enhance cybersecurity protections,' Expeditors said.
The company also reported lower shipment volumes in the first quarter because several customers shifted providers during its outage, causing 'further material adverse impact on the company's business, revenues, expenses, results of operations, cash flow and reputation.'
Because the Expeditors cyberattack caused delays for shippers picking up containers and left others wondering when outbound containers would return, two members of the US Federal Maritime Commission, Louis Sola and Carl Bentzel, said last month that demurrage and detention charges on those containers might not be fair.
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Expeditors said in a first quarter earnings suffered $40 million in incremental demurrage charges resulting from its inability to process and move shipments on time, said the company.
The company also racked up an additional $20 million in costs related to essentially cleaning up in the aftermath of the attack.
'The company incurred investigation, recovery, and remediation expenses, including costs to recover its operational and accounting systems and to enhance cybersecurity protections,' Expeditors said.
The company also reported lower shipment volumes in the first quarter because several customers shifted providers during its outage, causing 'further material adverse impact on the company's business, revenues, expenses, results of operations, cash flow and reputation.'
Because the Expeditors cyberattack caused delays for shippers picking up containers and left others wondering when outbound containers would return, two members of the US Federal Maritime Commission, Louis Sola and Carl Bentzel, said last month that demurrage and detention charges on those containers might not be fair.
SeaNews Turkey
