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How does an escort TF work? Do I form it, give it a destination, and then create the TFs I want escorted and instruct them to follow the escort? If I do this, will the escort adjust its speed to stay with the escortees?

I want to create six supply Tfs, have them proceed to base A, drop off two TFs, proceed to base B, drop off 2 more TFs, and then go to base C with the rest. They have to be escorted all the way.

I'm no expert, but AFAIK Escort task forces only really exist to protect damaged ships that are part of the TF - they won't actually do anything special for other TF's.
 
For your situation, I'd say the best course depends on what threat you're protecting them from. If it's a surface threat, form a Surface Combat task force then have everything Follow the slowest transport force. For submarines, form an ASW task force and likewise.
 
For an air threat, a separate escort is only really going to work if it includes a carrier - then the uber-CAP should cover all TF's in the same hex. If there's no carrier, each TF will need it's own AA protection as air strikes will only affect one TF and an attacked transport force won't benefit from a combat TF in the same hex.

Escort TF work as protection for ships IN IT. It is trying to avoids enemy.
You should form ASW TF following your transport TFs. But be aware, if there is no escort ship in transport TF, enemy submarines could just pop up and add their guns against transports.
If you like to have also some combat capacity for convoy protection, create SCTF following your transport TFs. It will engage enemy surface ships to protect the transports.
ASW TF is something like Hunter-Killer Group = it has initiative against subs. Escort ships in transport TF are defensive in nature.

I also use the Escort TF for moving important non-combattant ships around. AS, AD, AGP, AR, MLE, AV and AVD are all ship types that can benefit from being put in an escort TF on their way to a new base. 

IIRC.....

In the early release of the game, when a capital ship was severely damaged the game would break it out of a TF and form a new TF with only 1 DD as an escort. No matter what you did the program would only allow one escorting ship.
In one of the patches the Escort TF was created, which allows the player to 'escort' damaged ships or non-combatants with as many escorts as the player wants.

It happened so long ago I'd nearly forgotten how frustrating it was when a damaged CV would form it's own TF with one DD and get slaughtered by the opponents air strikes the following day.

ORIGINAL: bradfordkay

I also use the Escort TF for moving important non-combattant ships around. AS, AD, AGP, AR, MLE, AV and AVD are all ship types that can benefit from being put in an escort TF on their way to a new base. 

Yes. Escort is probably a hold-over, somewhat of a misnomer. The Only advantage to an Escort TF is that you can put any type of ship into it. You can (and should) perform your "escorting" by forming ASW, Air Combat, or Surface Combat TF's and either use the follow function or actively manage the moves.

If you use the follow function, make sure you do it the right way. An ASW TF at cruise speed of 15 will leave behind a Transport TF at cruise speed of 11, if the Transport TF is set to Follow the ASW TF. You have to do it the other way around.

Typically, I prefer to set up two or three TF. I will include at least one escorting ASW ship in the Transport TF. This functions to limit the attacks of any submarines that get into the hex. I will also create an ASW TF as a Hunter-Killer group and I will actively manage it so as to have it exactly one or two moves ahead of the Transport TF, finding and beating up on subs that lay in wait. Sometimes, I will create an Air Combat TF with a CVE and run it close to the transport TF (planes on Naval search at or below 5,000 ft).

Note on Escorts. DE's, MSW's, and SC's have good ASW weapons, but low experience crews. They make good escorts inside a TF, but aren't that great as ASW Hunter-Killers until they get experience. Escorts inside a TF generally have the effect of limiting the ability of enemy submarines to attack the escorted ship, but are less effective at finding and killing subs. Hunter-Killer TF's should be made up of high experience ships with extensive ASW weapons.

In War Plan Orange, you cannot have add a battleship to a transport task force. But you can create an escort task force to create a convoy including a pre-dreadnought battleship, then change this to a transport force. I suppose this could work in War in the Pacific, though there are more cruisers available for such work in this game.

In early WITP, when a BB was too damaged to continue with the rest of the task force, another task force was created and the BB and a DD for escort was placed in it.  Problem was that the newly created taskforce was a surface combat task force and worked like one {trying to react, trying to engage the enemy, etc}.  BBs are not allowed in a transport task force {which trie to avoid combat}, so damaged battleships had to be in a task force that the program sees as trying to engage the enemy.  The Escort task force gives BBs a task force that allows them to go from point A to point Luck without actively looking for combat.  The name the designers used is problematic in that whe  you look at the name you think it has something to do with escorting ships.
 
As far as escorting ships go, I think the best way {if you have enough escorts} is to have a couple of DD/DEs in a convoy to protect the convoy and four to six DD/DEs in an ASW task force following the convoy to prosecute any subs that find the convoy.  With the latest patch {actually a couple patches back} having more than six ships in an ASW task force does not add any benefit. 

I am just playing with my US escorts. I designed system with 3 types of permanent escort groups:
6 escort ship group within TF for important troop convoys
2-3 escort ship group within TF for less important/supply convoys
6 escort ship group as ASW TF following TFs passing in their area.

It is too early in the war to have all ships assembled properly and it will took some time untill all ships will be in their places. But as my opponents submarines arent raiding my LOCs there is no need to hurry....