The longstanding practice of exchanging personal data for online services takes a concerning turn as China adopts a similar approach in the maritime and logistics sectors. China’s potential use of this model through LOGINK, a state-backed logistics management platform, raises alarms about risks to commercial ports and the exposure of military logistics chains.
In a recent maritime security advisory, the U.S. Maritime Administration (MARAD) has issued a stark warning regarding China’s escalating technological, physical, and cyber threats in the maritime and logistics domains. At the core of this advisory lies the potential dangers associated with LOGINK, a logistics management system supported by the Chinese government. This platform could compromise global maritime infrastructure. To counter these risks, MARAD urges ports and maritime entities to remain vigilant and report any suspicious activities linked to LOGINK to the U.S. Coast Guard Cyber Command.
The concerns expressed by MARAD echo a recent report by the U.S.-China Economic and Security Commission (USCC). This report alerted Congress to the strategic implications of granting adversaries, including China, access to comprehensive insights into global shipping routes and commerce via LOGINK. The USCC cautioned that a forthcoming second-generation LOGINK, currently in development, is poised to introduce a cloud-based suite of enterprise software applications. These applications will feature advanced data analytics that could attract carriers and logistics firms. Such enhancements would empower LOGINK with even greater access to global commercial data, potentially providing China’s government with unparalleled perspectives on commercial transactions and trade dynamics.
USCC investigators highlighted, “China’s subsidization and promotion of a nominally public good in a private market could undermine the dynamism of comparable U.S. services. The United States lacks tools to address market distortions from Chinese digital services. The U.S. government does not have comparable tools to respond to digital services offered when the price is below market value.”
LOGINK: China’s Dominant Digital Maritime Platform
At the center of this advisory is China’s state-supported National Public Information Platform for Transportation and Logistics, known as LOGINK. Beyond being a mere digital platform, LOGINK functions as an integrated logistics management system, aggregating an extensive range of logistics data. This encompasses information from domestic and international ports, foreign logistics networks, hundreds of thousands of users within China, and other public databases.
Originally introduced outside China in 2010, LOGINK has expanded its reach, forging cooperation agreements with at least 24 global ports. Its capacity to amass sensitive business data and information from foreign governments, such as vessel details, cargo data, and corporate registries, has ignited significant security concerns. The USCC has identified LOGINK’s data collection capabilities as a potential threat, emphasizing the Chinese Communist Party’s strategy of leveraging LOGINK for military surveillance and solidifying its control over international maritime trade.
The USCC underscores that the LOGINK threat extends not only to foreign commercial ports but also domestic ones. USCC investigators note, “Chinese shipping firm COSCO is a LOGINK partner. COSCO currently operates terminals at Long Beach, Los Angeles, and Seattle, potentially granting LOGINK access to vessel, container, and other data at those ports. The Port of Los Angeles is a member of the International Port Community Systems Association (IPCSA) and may potentially share data with LOGINK through IPSCA’s Network of Trusted Networks currently under development.”
Nuctech’s Dual Nature: Security Equipment or Surveillance Tool?
The advisory casts light on other software and equipment, including Nuctech, a state-owned enterprise recognized for its data-centric security inspection equipment. While its offerings range from x-ray scanners to advanced facial recognition systems, concerns have arisen due to Nuctech’s affiliations with the CCP and the People’s Liberation Army. Consequently, the U.S. added Nuctech to the Department of Commerce’s Entity List, citing national security considerations.
MARAD’s alert follows earlier apprehensions concerning Chinese port crane and logistics software, raised by the House China Select Committee under Chairman Mike Gallagher at the Port of Miami in April. Discussions centered on the potential espionage capabilities of Chinese port software and crane equipment, particularly in monitoring U.S. military equipment movements. The committee aims to introduce legislation for inspecting port cranes and prohibiting those vulnerable to Chinese interference.
In a proactive response, MARAD has equipped maritime stakeholders with comprehensive information links and fundamental guidelines. Recommendations range from understanding data-sharing protocols to enhancing infrastructure resilience and contemplating alternative software and systems. The advisory also provides detailed mitigation strategies for automated port cranes, highlighting the importance of secure data transfers and stringent access controls.
Amid China’s expanding digital influence in maritime and logistics, the U.S. and its allies find themselves at a critical juncture. The revelations surrounding LOGINK and other Chinese digital platforms underscore the urgency for stakeholders in the commercial shipping sector to comprehend the military risks associated with Chinese software. As China’s technological capabilities advance, the U.S. is likely to bolster its cybersecurity measures, safeguarding its commercial and military interests. However, disentangling systems from LOGINK may prove challenging for international shippers. The commercial maritime community, supported by logistics and technology partners, must not only grasp conventional cybersecurity practices but also engage with MARAD, the U.S. Coast Guard, and the military to understand their concerns. The stakes are substantial, and the future of global maritime trade hangs in the balance.
Link to original article can be view below
U.S. Sounds Alarm on China’s Leading Ship Logistics Software LOGINK
