This is the first report presenting theLogistics Performance Index (LPI) and indicators. It aims toshed light on how different countries are doing in the areaof trade logistics, and what they can do to improve theirperformance. It is based on a worldwide survey of the globalfreight forwarders and express carriers who are the mostactive in international trade. LPI and its underlyingindicators constitute a unique dataset to measure countryperformance across several dimensions of logistics and tobenchmark that logistics performance against 150 countries.It provides the empirical basis to understand and comparedifferences in trade logistics as well as to inform policywith respect to difficult bottlenecks and tradeoffs. As atool for policymakers, professionals, development agencies,and other stakeholders, it will directly support thefast-growing agenda for reforms and investments in trade andtransport facilitation. The report provides some insights onthe cost of poor logistics to country competitiveness andthe sources of those higher costs. Beyond cost and timetaken to deliver goods, the predictability and reliabilityof supply chains is increasingly important in a world ofjust-in-time production sharing. Costs related to hedgingagainst uncertainty are significant. Equally, cost andquality of logistics are determined not just byinfrastructure and the performance of public agencies, butalso by the availability of quality and competitive privateservices. Moreover, in many developing countries, problemsof adverse geography are compounded by a weak modernservices sector due to poor institutions or over-regulation.The report closes with some practical insights, advocating acomprehensive, integrated approach to ensure that actions inone area are not rendered ineffective by bottlenecks in another.
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