Flexible Responses to Global Supply Chain Disruptions: Empirical Evidence From International Logistics

Global supply chain managers continue to be confronted with major supply chain disruptions that have increased container shipping lead times. Because increased lead times can further propagate these disruptions, the literature suggests that supply chain managers can leverage logistics flexibility by switching to air freight in times of uncertainty and volatility. However, these examinations have largely assumed that supply chain managers will leverage this capability in times of uncertainty. This study contributes to this literature by examining the manifestation of the logistics‐flexible response at the operational level when containerized shipping lead times increase. Building on theory concerning how firms respond to supply shocks, this study develops a middle‐range theory that posits that supply chain managers will switch to air freight to maintain coordination in their supply chain as containerized shipping lead times increase. We posit that this effect will be positively moderated by dependency on the ports of Los Angeles and Long Beach and value density. To test these predictions, we use detailed US import data on a sample of products that, prior to the pandemic, used a relatively equal split of containerized and air freight. The study finds support for the predictions.