Consultant Insight: Strikes and ransomware attack hamper Royal Mail service

Facing increasing competition and parcel volume declines, the British postal service, Royal Mail, is investing in its operations to streamline services. However, several strikes from workers demanding pay increases and better working conditions have hampered services. As a result, Royal Mail announced it might need to cut up to 10,000 roles by August, blaming strike actions by its workers and the continuing decline of its core business. [caption id="attachment_57133797" align="alignright" width="460"] Royal Mail vans parked over labor shortages this summer. (Photo/Bloomberg)[/caption] The strikes, including six days in December, have cost Royal Mail more than £100m and caused delays to the delivery of Christmas cards and parcels. For the financial year ending March 2022, parcel volumes declined 12.6% year-over-year to 1.5 billion. But, compared to the same period in 2020, parcel volumes increased 15.6%. According to a UK-based publication, The Guardian , more strikes are likely. The Communications Workers Union (CWU) rejected Royal Mail management’s latest offer and plans to send ballot papers to members next week, with the result due on February 16. And if that wasn’t enough, the Royal Mail was hit by a ransomware attack on January 10, impacting international mail and parcel deliveries. According to its latest service update , it is slowly restarting international delivery services. “We are making good progress in dispatching items already in our network across all our services. Please note you may see less tracking information than usual as we continue to restore our services. At this time, we continue to ask customers not to submit new parcels for export, and we will update further on service resumption as soon as possible,” according to Royal Mail’s service update. The BBC reports that the ransomware used in the attack is Lockbit, designed to lock up users’ computers in exchange for ransom. Security firms note that Lockbit attacks mainly affect businesses and government organizations. Recently, auto parts manufacturer Continental and software firm Entrust was attacked by the same ransomware. Cybersecurity concerns grow LockBit accounts for just over a quarter of all known ransomware attacks in 2022, according to the Israeli security firm CyberInt. In its latest report, Global Cybersecurity Outlook 2023 , the World Economic Forum (WEF) notes that g eopolitical developments and the implementation of emerging technologies have re-shaped the cyber threat and increased organized cyber-attackers' potential for harm. As a result, a catastrophic cyberattack within the next two years is possible. Indeed, based on surveys, interviews, and workshops with more than 300 business leaders and security experts, the WEF found that 86% believe such an event is possible. The WEF recommendations include building a security culture by increasing employees’ awareness of cyberattacks. According to the report, an organization’s cyber capabilities grow with its employees’ understanding of cyber risks and their personal role and responsibility in helping to manage them. In addition, there is a critical need to close the cyber talent gap. Talent recruitment and retention continue to be a key challenge for managing cyber resilience. The shortfall between supply and demand for cybersecurity experts was estimated at 2.27 million in 2021, according to cybersecurity professional organization (ISC)². Cargo Facts EMEA, the essential event for stakeholders in Europe, the Middle East and Africa, will take place live Feb. 6-8 in Dubai. Register today.

Consultant Insight: Strikes and ransomware attack hamper Royal Mail service

Disruptions have hit the Royal Mail as strikes and a ransomware attack cripple delivery service during and post-holiday season.

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