An Assessment of the Impacts on the International Container Transport and the World Economy Resulting from the 2014/15 U.S. West Coast Port Disruption

Abstract

The development of global supply chains has progressed as a result of reduced transport costs and lead times associated with the expansion of the global container trade. However, this extensive, highly efficient, just-in-time supply chain system is vulnerable in the face of various disasters, and maritime transport and port operations face the risk of stagnation induced not just by natural disasters but also by man-made disasters such as strikes, explosive accidents and so on. Against this background, a review of the 2014/15 U.S. West Coast port disruptions was conducted to assess its impact on the international container transport and the world economy. The findings of the study indicated that the disruption induced an additional two weeks of transportation lead time between the United States and East Asian countries. Direct losses were estimated at above US$7 billion and overall losses, including indirect losses, were estimated within a range of US$10 to 13 billion. In addition, a procedure is proposed for reducing the economic impacts of the stagnation of maritime transport and port operations on world trade.