Coast Guard Enhances Cybersecurity Regulations | Schwabe, Williamson & Wyatt PC

The Rising Tide of Cybersecurity Threats in the Maritime Industry

In recent years, the maritime industry has increasingly found itself in the crosshairs of cybercriminals. The surge in shipping-related cyberattacks has become a pressing challenge for ports and maritime operations worldwide. From ransomware attacks that cripple critical shipping systems to data breaches that expose sensitive operational information, the stakes have never been higher. As the industry grapples with these threats, the United States Coast Guard (USCG) has stepped in with a new cybersecurity rule designed to bolster defenses across the maritime transportation system.

Understanding the Coast Guard’s Cybersecurity Rule

Effective July 16, 2025, the USCG’s new cybersecurity rule aims to bridge the gap between maritime operations and robust digital security. This regulation is particularly significant as it seeks to address vulnerabilities within the Maritime Transportation Security Act (MTSA), which governs US-flagged vessels, port operators, cargo terminals, and other critical maritime infrastructure.

Key Requirements of the Rule

The rule introduces several essential requirements for MTSA-regulated entities:

1. Cyber Risk Assessments: Entities must conduct comprehensive risk assessments to identify potential vulnerabilities within their systems.

2. Cybersecurity Plans: Organizations are required to integrate cyber risk management procedures into their existing security plans, ensuring a holistic approach to security.

3. Incident Reporting: Any cybersecurity-related incidents must be promptly reported to the Coast Guard and other relevant authorities, ensuring transparency and swift action.

Additionally, the final rule includes a solicitation for comments regarding potential delays in implementation for U.S.-flagged vessels, with feedback due by March 18, 2025.

Prioritizing Compliance

Compliance with the Coast Guard’s cybersecurity rule is not merely a regulatory obligation; it is a critical step toward enhancing operational resilience. To facilitate this, MTSA-regulated entities must appoint a Cybersecurity Officer (CySO) responsible for implementing and maintaining compliance with the new requirements. This role is vital for safeguarding operational technology (OT), reducing attack surfaces, and ensuring business continuity.

Penalties for Non-Compliance

The consequences of failing to meet the Coast Guard’s cybersecurity requirements can be severe. Non-compliance may lead to hefty fines, loss of operating licenses, operational delays, and significant reputational damage. More alarmingly, inadequate cybersecurity measures could result in catastrophic incidents that jeopardize not only business operations but also the safety of personnel and the environment.

Steps to Prepare for Compliance

While the requirements of the cybersecurity rule may seem daunting, there are several actionable steps that organizations can take to ease the path toward compliance:

1. Conduct a Cybersecurity Risk Assessment:

   • Identify and document critical systems and their vulnerabilities.
   • Rate each risk based on its likelihood and potential impact on operations.
   • Perform penetration tests to uncover weaknesses in both IT and OT systems.

2. Update Security Plans:

   • Integrate insights from the risk assessment into your Facility Security Plan or Vessel Security Plan.
   • Define clear protocols for preventing, detecting, and responding to cyber threats.

3. Set Up Monitoring and Incident Response:

   • Implement continuous monitoring systems that detect and log unusual behaviors.
   • Develop a robust incident response plan that outlines steps for containing and recovering from attacks.

4. Train Your Staff:

   • Provide cybersecurity workshops to maritime employees.
   • Equip crew members to recognize phishing attempts, ransomware threats, and other hazards.
5. Get Help:
   • Understanding maritime-specific cybersecurity can be complex. Consider collaborating with firms that specialize in designing and implementing compliant security solutions for marine operators.

Resources and Tools

To simplify the compliance process, organizations can leverage various tools and resources tailored for the maritime industry. These may include cybersecurity frameworks, risk assessment tools, and incident response templates specifically designed for maritime operations.

Stay Ahead of the Curve

The Coast Guard’s new rule may be just the beginning of a broader regulatory landscape. As cyber threats evolve, maritime cybersecurity regulations are likely to become more stringent. Companies should consider:

• Monitoring updates to Coast Guard and MTSA regulations.
• Regularly reviewing and updating their cybersecurity measures.
• Taking a proactive approach to protect OT systems against emerging threats, including AI-driven cyberattacks.

Conclusion

Preparing for the Coast Guard’s cybersecurity rule is not solely about compliance; it is about safeguarding operations, protecting team members, and ensuring the integrity of the maritime ecosystem. Companies should begin by assessing their current practices, investing in appropriate tools, and fostering a culture of cybersecurity awareness. By taking these proactive steps, the maritime industry can better navigate the turbulent waters of cybersecurity threats and emerge more resilient in the face of adversity.