Perceptions of small to medium ports in norther Europe on the impact of security initiatives

Abstract: In the aftermath of the terror attacks on New York in September 2001 several iniativies are set up to protect global supply chains from larger disruptions by antagonistic threats such as terrorism or piracy. Many security initiatives such as the International Ship and Port Security (ISPS) code, the Container Security Initiative (CSI) or the Authorized Economic Operator (AEO) are targeting the maritime infrastructure and especially sea ports to prevent future disruptions to this vital part of the global economy. In logistics, the quality of the service is much more important than in goods dominated industries due to the absence of physical clues. Therefore, the effect of security on service quality is much discussed. One the one hand, studies found that security initiatives can increase transparency, decrease variability and improve customs clearance. On the other hand, negative effects such as financial burdens and increased administration are found as well. Moreover, much of the previous research into the effects of supply chain security on ports assumed quantitative and static measures while being mostly focused on larger ports. Therefore, this study aims to investigate the perspectives of small to medium ports in northern Europe about the impact of security initiatives on their service quality and thereby aims to enrich the understanding of how supply chain security impacts service quality. Hence, this study conducts three expert interviews to create understanding of the problem in the real world and then applies the gained insights into the composition of an online questionnaire which is answered by small to medium ports in northern Europe. The results show that the respondent ports today hold slightly positive perceptions on the impact of security initiatives on the service quality aspects of efficiency. Further, the ports display a relaxed attitude towards the impact on the service quality aspect of customer satisfaction with a light tendency to positive perceptions.