United States Executive Order and Regulations on Cybersecurity at US Ports

On 21 February 2024, President Biden issued the Executive Order on Amending Regulations Relating to the Safeguarding of Vessels, Harbors, Ports, and Waterfront Facilities of the United States (the “EO”).

Concurrently, the United States Department of Transportation – Marine Administration, issued Advisory 2024-002 re Foreign Adversarial Technological, Physical, and Cyber Influence, the United States Department of Homeland Security issued Directive 105-4, Cyber Risk Management Actions for Ship-to-Shore Cranes Manufactured by PRC Companies, and the United States Department of Homeland Security issued a Notice of Proposed Rulemaking for Cybersecurity in the Marine Transportation System (collectively, the “Regulations”).

The EO explicitly authorises the United States Coast Guard to broadly control the movement of vessels and operation of ports and port infrastructure to ensure cybersecurity compliance by all participants. The Regulations target ship-to-shore cranes, of which 80% are currently owned by PRC companies, namely LOGINK, Nuctech, and ZPMC. The Regulations target the identified entities themselves, which now have to abide by cybersecurity standards set by the Coast Guard, and “maritime industry stakeholders, including vessel owners/operators, shippers, and port operators”. The Notice of Proposed Rulemaking also sets forth proposed cybersecurity standards for US port operators, port infrastructure, and vessels generally. The summary of EO also noted the United States will invest US$20 billion through grants over the next 5 years to replace the current PRC ship-to-shore cranes with those manufactured in the United States by PACECO, a United States subsidiary of Mitsui (Japan). 

For more information on how we can help you navigate US-China tensions, please contact Charles Wu at Charles.Wu@clydeco.com