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Cyberattack leaves $1m of frozen lamb trapped at docks

Euan Black
Euan BlackWork and careers reporter

Ararat Meat Exports has at least $1 million worth of frozen lamb and mutton waiting to be loaded onto ships at Swanson Dock in Melbourne.

General manager Ted Rogers reckons the containers will arrive at their destinations in the United States and Middle East at least 10 days after they were scheduled to arrive, which means the company will have to cop late payments from customers.

“They usually pay when [the shipments] arrive, so it puts us a week or fortnight behind at least,” Mr Rogers said, adding there was no risk of spoilage.

DP World Australia boss Nicolaj Noes says it could be days before containers stuck at ports are collected. Oscar Colman

The exporter is one of many Australian companies caught up in the fallout from the cybersecurity attack on major port operator DP World on Friday.

Mr Rogers said the hack on DP World’s systems had exacerbated delays caused by ongoing industrial action.

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“The strikes are causing us more grief than this cyberattack,” he said.

Further delays expected

The cyberattack left 30,000 containers of consumer goods stranded at its terminals in Sydney, Melbourne, Brisbane and Freemantle on Sunday.

The Dubai-controlled stevedore, which handles 40 per cent of the country’s international freight, reopened the gates to its east coast landside operations early on Monday morning, and said it expected to move 5000 containers out of the four affected terminals over the course of the day.

But it also warned of further delays in coming days as it worked through a backlog of delayed shipments – and companies are concerned about the knock-on effects for future orders.

The owner of a separate NSW-based premium foods exporter, who asked to remain anonymous, told The Australian Financial Review he had more than 10 containers either stuck at the affected ports or scheduled to leave from them within days.

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‘Not a good thing to wake up to’

He said each container had between $100,000 and $150,000 worth of goods in it.

“It’s not a good thing to wake up to on a Sunday morning,” the owner said, referring to when he heard about the cyberattack.

He told the Financial Review that people in the agricultural industry were “pretty resilient” as they had plenty of experience dealing with disease outbreaks, foreign currency fluctuations and global financial crises.

The cyberattack on DP World comes just weeks after Qantas Freight suffered an IT outage. Joe Armao

But he said this latest setback was difficult to take, as it came just weeks after Qantas Freight suffered an IT system outage that affected roughly 25 per cent of the nation’s inbound airfreight, and reportedly cost its customers hundreds of thousands of dollars.

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Daniel Horwitz, operations manager at Australian meat exporter Remesis Group, which was unaffected by the cybersecurity attack on DP World, said such incidents could have significant effects on exporters given containers of wagyu beef “can be worth close to a million dollars”.

“So it’s crucial for exporters to have their ducks in a row, but unfortunately it’s out of your control sometimes,” Mr Horwitz said.

Christmas shopping unlikely to be affected

On Sunday, retailers and supermarkets were keen to stress they had already received most of their Christmas stock.

A Woolworths spokeswoman said the supermarket chain was monitoring the situation but didn’t “anticipate any immediate impacts at this time”. The Financial Review understands rival chain Coles also expects no immediate impacts.

Meanwhile, Paul Zahra, chief executive of the Australian Retailers Association, said on Sunday that most retailers had already received their Christmas imports.

“But retail is a 52-week a year operation and so any significant disruption to port operations is potentially harmful.”

Euan Black is a work and careers reporter at The Australian Financial Review. Email Euan at euan.black@afr.com

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