LOGISTICS PERFORMANCE INDEX (LPI)

The Logistics Performance Index (LPI) is an indicator published annually by the World Bank (WB), assessing the logistics capabilities of countries worldwide. It reflects the efficiency of a nation’s logistics system, directly impacting its trade competitiveness and attractiveness to international investors.

A country with a well-developed logistics system enables smooth cargo flow, economic growth, and expanded import-export markets. Businesses can rely on the LPI to evaluate the level of logistics facilitation when considering investment or business cooperation opportunities in a specific country.

The international LPI is measured based on six key components:

1. Infrastructure

Assesses the quality of transportation infrastructure including roads, seaports, railways, airports, and information technology systems — the foundation for efficient logistics operations.

2. International Shipments

Measures the ease and affordability of arranging international shipments, covering costs such as agency fees, port charges, warehousing, and transportation services.

3. Logistics Competence

Evaluates the competence and quality of logistics services providers, including freight forwarders, customs brokers, warehouse operators, and distribution centers.

4. Tracking & Tracing

Assesses the ability to track and trace consignments in real time, helping businesses manage their logistics processes efficiently and reduce operational risks.

5. Timeliness

Measures the punctuality of shipments, including customs clearance speed, transportation lead times, and delivery accuracy at final destinations.

6. Customs

Evaluates the simplicity, transparency, and speed of customs clearance procedures, which significantly affect logistics costs and delivery times.