FedEx Unit TNT Still Impacted By Cyber Attack - Global Trade Magazine
  July 20th, 2017 | Written by

FedEx Unit TNT Still Impacted By Cyber Attack

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  • FedEx: “We cannot estimate when TNT services will be fully restored.”
  • All TNT facilities are operational and most TNT services are available.
  • FedEx reported that the financial impact of cyber attack on TNT is likely to be material.

TNT Express customers are still experiencing widespread service and invoicing delays, and manual processes are being used to facilitate a significant portion of TNT operations and customer service functions.

So reported FedEx, TNT’s parent company in a US government filing earlier this week.

“We cannot estimate when TNT services will be fully restored,” the document said. “Contingency plans that make use of both FedEx Express and TNT networks remain in place to minimize the impacts to customers.”

Meanwhile, all TNT depots, hubs, and facilities are operational and most TNT services are available.

On June 28, FedEx announced that the worldwide operations of TNT were significantly affected by the cyber attack known as Petya, which involved the spread of an information technology virus through a Ukrainian tax software product. TNT operates in Ukraine and uses the software that was compromised, which allowed the virus to infiltrate TNT systems and encrypt its data.

“While TNT operations and communications were significantly affected,” said a FedEx statement, “no data breach or data loss to third parties is known to have occurred…”

The systems and data of all other FedEx companies are currently unaffected by the attack, the company said.

FedEx is currently focused on restoring operational systems, along with finance and back-office systems. “We cannot yet estimate how long it will take to restore the systems that were impacted,” the FedEx statement said, “and it is reasonably possible that TNT will be unable to fully restore all of the affected systems and recover all of the critical business data that was encrypted by the virus.”

FedEx also reported that the financial impact of the attack is “likely” to be material. “We do not have cyber or other insurance in place that covers this attack,” the company said. “Although we cannot currently quantify the amounts, we have experienced loss of revenue due to decreased volumes at TNT and incremental costs associated with the implementation of contingency plans and the remediation of affected systems.”

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