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Wary of hackers, Biden orders new cybersecurity measures at U.S. ports

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Wary of hackers, Biden orders new cybersecurity measures at U.S. ports

President Biden signed an executive order Wednesday that creates new rules to shore up security at American ports — and commits $20 billion to replace Chinese-made cranes that U.S. officials worry could be vulnerable to hacking and remote control.

The executive order empowers the U.S. Coast Guard to respond to cybersecurity incidents at ports, and lays out a new set of safety regulations that port operators must follow to fend off digital attackers.

“Most critical infrastructure owners and operators have a list of safety regulations they have to comply with,” said Anne Neuberger, deputy national security advisor at the White House. “We want to ensure that there are similar requirements for cyber, when a cyberattack can cause just as much, if not more, damage than a storm or another physical threat.”

Nationwide, roughly 31 million jobs and $5.4 trillion in economic activity are linked to trade that passes through ports, all of which could be disrupted by a ransomware or other type of cyberattack, Neuberger said.

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The ports of Los Angeles and Long Beach constitute the largest container port facility in the hemisphere, handling 9.9 million and 9.1 million TEUs — twenty-foot equivalent units, the standard volume metric in ocean shipping — respectively, in 2022. The San Pedro complex in Los Angeles handles 29% of all container-based trade in the U.S., and nearly 20% of all U.S. seaport trade.

That volume of cargo is loaded on and off of ships by a forest of roughly 150 cranes, most of which are manufactured by one company: Shanghai Zhenhua Heavy Industries Co., or ZPMC. The company says that it controls around 70% of the global market for cranes, and 80% of the U.S. market, according to the Wall Street Journal.

Rear Adm. John Vann, who heads the U.S. Coast Guard’s Cyber Command, confirmed that 80% number to reporters, and added that their computerized control systems leave them vulnerable to attack. Although the San Pedro port complex is owned and administered by public agencies, the terminals are leased to private companies, which purchase and operate their own cranes.

As part of the $20-billion investment in port infrastructure, the White House also announced that a U.S. subsidiary of the Japanese industrial giant Mitsui is “planning to onshore domestic manufacturing capacity for American and Korean production for the first time in 30 years, pending final site and partner selection.” The announcement did not include details of how these new cranes and the money to buy them will reach private port terminal operators in San Pedro and beyond.

The executive order is part of the Biden administration’s focus on protecting critical infrastructure such as power grids, ports and pipelines, most of which are controlled by networked software and therefore vulnerable to hacks. There is no set of nationwide standards that govern how operators should protect against potential attacks online.

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The threat continues to grow. Hostile activity in cyberspace — from spying to the planting of malware to infect and disrupt a country’s infrastructure — has become a hallmark of modern geopolitical rivalry.

For example, in 2021, the operator of the nation’s largest fuel pipeline had to temporarily halt operations after it fell victim to a ransomware attack in which hackers held its data hostage in exchange for money. The company, Colonial Pipeline, paid $4.4 million to a Russia-based hacker group, though Justice Department officials later recovered much of the money.

Ports too are vulnerable. In Australia last year, a cyberattack forced one of the country’s largest port operators to suspend operations for three days.

The Port of L.A. was subject to roughly 754 million cyber-intrusion threats in 2023, according to an article by its executive director, Gene Seroka, published this month. The port has been an industry leader in cybersecurity efforts for years, since establishing a dedicated Cyber Security Operations Center in 2014 and adding the Cyber Resilience Center to allow all the various companies and agencies cooperating at the port to coordinate their cybersecurity efforts in 2022.

Late last month, U.S. officials said they had disrupted a state-backed Chinese effort to plant malware that could be used to damage civilian infrastructure. Vann said this type of potential attack was a concern as officials pushed for new standards, but they are also worried about the possibility for criminal activity.

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Vann said that Coast Guard cyber protection teams had “assessed cybersecurity or hunted for threats” on nearly half of the Chinese-manufactured cranes in the U.S. to date and will continue to monitor the current stock of cranes across the nation.

The new standards, which will be subject to a public comment period, will be required for any port operator and there will be penalties for failing to comply, though the officials did not outline them. They require port operators to notify authorities when they have been victims of a cyberattack, and give the Coast Guard, which regulates the nation’s ports, the ability to respond to cyberattacks and enforce the new rules.

The Associated Press contributed to this report.

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U.S. Space Force awards $1.6 billion in contracts to South Bay satellite builders

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U.S. Space Force awards .6 billion in contracts to South Bay satellite builders

The U.S. Space Force announced Friday it has awarded satellite contracts with a combined value of about $1.6 billion to Rocket Lab in Long Beach and to the Redondo Beach Space Park campus of Northrop Grumman.

The contracts by the Space Development Agency will fund the construction by each company of 18 satellites for a network in development that will provide warning of advanced threats such as hypersonic missiles.

Northrop Grumman has been awarded contracts for prior phases of the Proliferated Warfighter Space Architecture, a planned network of missile defense and communications satellites in low Earth orbit.

The contract announced Friday is valued at $764 million, and the company is now set to deliver a total of 150 satellites for the network.

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The $805-million contract awarded to Rocket Lab is its largest to date. It had previously been awarded a $515 million contract to deliver 18 communications satellites for the network.

Founded in 2006 in New Zealand, the company builds satellites and provides small-satellite launch services for commercial and government customers with its Electron rocket. It moved to Long Beach in 2020 from Huntington Beach and is developing a larger rocket.

“This is more than just a contract. It’s a resounding affirmation of our evolution from simply a trusted launch provider to a leading vertically integrated space prime contractor,” said Rocket Labs founder and chief executive Peter Beck in online remarks.

The company said it could eventually earn up to $1 billion due to the contract by supplying components to other builders of the satellite network.

Also awarded contracts announced Friday were a Lockheed Martin group in Sunnyvalle, Calif., and L3Harris Technologies of Fort Wayne, Ind. Those contracts for 36 satellites were valued at nearly $2 billion.

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Gurpartap “GP” Sandhoo, acting director of the Space Development Agency, said the contracts awarded “will achieve near-continuous global coverage for missile warning and tracking” in addition to other capabilities.

Northrop Grumman said the missiles are being built to respond to the rise of hypersonic missiles, which maneuver in flight and require infrared tracking and speedy data transmission to protect U.S. troops.

Beck said that the contracts reflects Rocket Labs growth into an “industry disruptor” and growing space prime contractor.

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California-based company recalls thousands of cases of salad dressing over ‘foreign objects’

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California-based company recalls thousands of cases of salad dressing over ‘foreign objects’

A California food manufacturer is recalling thousands of cases of salad dressing distributed to major retailers over potential contamination from “foreign objects.”

The company, Irvine-based Ventura Foods, recalled 3,556 cases of the dressing that could be contaminated by “black plastic planting material” in the granulated onion used, according to an alert issued by the U.S. Food and Drug Administration.

Ventura Foods voluntarily initiated the recall of the product, which was sold at Costco, Publix and several other retailers across 27 states, according to the FDA.

None of the 42 locations where the product was sold were in California.

Ventura Foods said it issued the recall after one of its ingredient suppliers recalled a batch of onion granules that the company had used n some of its dressings.

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“Upon receiving notice of the supplier’s recall, we acted with urgency to remove all potentially impacted product from the marketplace. This includes urging our customers, their distributors and retailers to review their inventory, segregate and stop the further sale and distribution of any products subject to the recall,” said company spokesperson Eniko Bolivar-Murphy in an emailed statement. “The safety of our products is and will always be our top priority.”

The FDA issued its initial recall alert in early November. Costco also alerted customers at that time, noting that customers could return the products to stores for a full refund. The affected products had sell-by dates between Oct. 17 and Nov. 9.

The company recalled the following types of salad dressing:

  • Creamy Poblano Avocado Ranch Dressing and Dip
  • Ventura Caesar Dressing
  • Pepper Mill Regal Caesar Dressing
  • Pepper Mill Creamy Caesar Dressing
  • Caesar Dressing served at Costco Service Deli
  • Caesar Dressing served at Costco Food Court
  • Hidden Valley, Buttermilk Ranch
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They graduated from Stanford. Due to AI, they can’t find a job

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They graduated from Stanford. Due to AI, they can’t find a job

A Stanford software engineering degree used to be a golden ticket. Artificial intelligence has devalued it to bronze, recent graduates say.

The elite students are shocked by the lack of job offers as they finish studies at what is often ranked as the top university in America.

When they were freshmen, ChatGPT hadn’t yet been released upon the world. Today, AI can code better than most humans.

Top tech companies just don’t need as many fresh graduates.

“Stanford computer science graduates are struggling to find entry-level jobs” with the most prominent tech brands, said Jan Liphardt, associate professor of bioengineering at Stanford University. “I think that’s crazy.”

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While the rapidly advancing coding capabilities of generative AI have made experienced engineers more productive, they have also hobbled the job prospects of early-career software engineers.

Stanford students describe a suddenly skewed job market, where just a small slice of graduates — those considered “cracked engineers” who already have thick resumes building products and doing research — are getting the few good jobs, leaving everyone else to fight for scraps.

“There’s definitely a very dreary mood on campus,” said a recent computer science graduate who asked not to be named so they could speak freely. “People [who are] job hunting are very stressed out, and it’s very hard for them to actually secure jobs.”

The shake-up is being felt across California colleges, including UC Berkeley, USC and others. The job search has been even tougher for those with less prestigious degrees.

Eylul Akgul graduated last year with a degree in computer science from Loyola Marymount University. She wasn’t getting offers, so she went home to Turkey and got some experience at a startup. In May, she returned to the U.S., and still, she was “ghosted” by hundreds of employers.

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“The industry for programmers is getting very oversaturated,” Akgul said.

The engineers’ most significant competitor is getting stronger by the day. When ChatGPT launched in 2022, it could only code for 30 seconds at a time. Today’s AI agents can code for hours, and do basic programming faster with fewer mistakes.

Data suggests that even though AI startups like OpenAI and Anthropic are hiring many people, it is not offsetting the decline in hiring elsewhere. Employment for specific groups, such as early-career software developers between the ages of 22 and 25 has declined by nearly 20% from its peak in late 2022, according to a Stanford study.

It wasn’t just software engineers, but also customer service and accounting jobs that were highly exposed to competition from AI. The Stanford study estimated that entry-level hiring for AI-exposed jobs declined 13% relative to less-exposed jobs such as nursing.

In the Los Angeles region, another study estimated that close to 200,000 jobs are exposed. Around 40% of tasks done by call center workers, editors and personal finance experts could be automated and done by AI, according to an AI Exposure Index curated by resume builder MyPerfectResume.

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Many tech startups and titans have not been shy about broadcasting that they are cutting back on hiring plans as AI allows them to do more programming with fewer people.

Anthropic Chief Executive Dario Amodei said that 70% to 90% of the code for some products at his company is written by his company’s AI, called Claude. In May, he predicted that AI’s capabilities will increase until close to 50% of all entry-level white-collar jobs might be wiped out in five years.

A common sentiment from hiring managers is that where they previously needed ten engineers, they now only need “two skilled engineers and one of these LLM-based agents,” which can be just as productive, said Nenad Medvidović, a computer science professor at the University of Southern California.

“We don’t need the junior developers anymore,” said Amr Awadallah, CEO of Vectara, a Palo Alto-based AI startup. “The AI now can code better than the average junior developer that comes out of the best schools out there.”

To be sure, AI is still a long way from causing the extinction of software engineers. As AI handles structured, repetitive tasks, human engineers’ jobs are shifting toward oversight.

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Today’s AIs are powerful but “jagged,” meaning they can excel at certain math problems yet still fail basic logic tests and aren’t consistent. One study found that AI tools made experienced developers 19% slower at work, as they spent more time reviewing code and fixing errors.

Students should focus on learning how to manage and check the work of AI as well as getting experience working with it, said John David N. Dionisio, a computer science professor at LMU.

Stanford students say they are arriving at the job market and finding a split in the road; capable AI engineers can find jobs, but basic, old-school computer science jobs are disappearing.

As they hit this surprise speed bump, some students are lowering their standards and joining companies they wouldn’t have considered before. Some are creating their own startups. A large group of frustrated grads are deciding to continue their studies to beef up their resumes and add more skills needed to compete with AI.

“If you look at the enrollment numbers in the past two years, they’ve skyrocketed for people wanting to do a fifth-year master’s,” the Stanford graduate said. “It’s a whole other year, a whole other cycle to do recruiting. I would say, half of my friends are still on campus doing their fifth-year master’s.”

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After four months of searching, LMU graduate Akgul finally landed a technical lead job at a software consultancy in Los Angeles. At her new job, she uses AI coding tools, but she feels like she has to do the work of three developers.

Universities and students will have to rethink their curricula and majors to ensure that their four years of study prepare them for a world with AI.

“That’s been a dramatic reversal from three years ago, when all of my undergraduate mentees found great jobs at the companies around us,” Stanford’s Liphardt said. “That has changed.”

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