Supply-chain managers' most favored option for dealing with the West Coast ports dispute is to divert cargo to East Coast ports, according to a nationwide survey carried out by logistics services provider Philadelphia-based BDP International. Most of the managers surveyed were not optimistic about a timely settlement of the dispute, and indicated that their long-term reliance on other ports, notably on the East Coast, would increase.

The survey was co-sponsored by BDP and its supply chain consultancy unit, Centrx. It was conducted by Web-based survey design company Adler Research between October 24 and October 30, 2002. Six hundred managers were sent questionnaires and 26 percent responded.

Currently favored actions, reported by 74 percent of the supply-chain managers surveyed, include cargo diversions to East Coast ports, preferred by almost 52 percent; increases in safety stocks, 34 percent; alternate sourcing, 29 percent, and diversions to Gulf Coast ports, 29 percent.

Nearly 63 per cent of respondents were not optimistic about a timely settlement of the dispute. Around 54 percent favored extending the Taft-Hartley cooling-off period beyond the current 80-day limit.

The dispute has impacted the managers' long-term plans. While more than 48 percent of respondents reported no plans to alter supply chain strategies due to the shutdown, 52 percent anticipate planned increased reliance on alternate port facilities.

East Coast ports were the clear favorite, at 33 percent, followed in descending order by ports along the Gulf Coast, 21 percent; in Canada, 16 percent; and Mexico, six percent. About 21 percent of shippers planned to increase safety stock, while the same percentage expected to seek alternate sources for essential items.

Almost 63 percent of respondents said the West Coast port work stoppage came unexpectedly. Forty-four percent reported preparing contingency plans in advance. "We were prepared for a number of two- or three-day closures that would cause one-week or two-week backlogs. We did not expect a two-week closure that would cause a month-or-more backlog," said one shipper. Other shippers reported layoffs, angry customers and financial impact from lost sales and higher transportation costs, according to BDP. An importer said that one product line could not be shipped for the month of October because it was sitting on a boat waiting to be unloaded.

Not all shippers complained, however. A U.S. manufacturer wrote that following a reduction in foreign dumping "our company received orders from many companies looking for a domestic alternate source."

By Ken Cottrill