Kink in the Logistics Supply Chain: Interorganizational Relations in the Port Economy

Abstract

The intermodal logistics supply chain is designed to move goods from the point of production to the point of consumption as quickly and as cheaply as possible. The ability to accomplish this objective has allowed for the wholesale geographic relocation and offshoring of basic manufacturing and assembly. As a chain of linked and integrated organizations characterized by sequential interdependence, interorganizational relations play a key role in determining the level of integration and seamlessness. Yet there is one critical interorganizational link in the chain that deviates from this vision. This is the relationship between the shipping container terminal and drayage trucking operations which is better described as a form of intermodal disintegration. The weakness in this link of the supply-chain is explained by the divergent industrial structures and labor market conditions, the unique nature of the transaction, and the externalization of costs to subordinate workers.