May 30, 2024

World Bank Releases 2023 Logistics Performance Index Report, Highlighting Importance of Resilience and Reliability in Logistics Performance

OCTOBER 11, 2022 - WASHINGTON DC. 2022 IMF/WORLD BANK ANNUAL MEETINGS: Inclusive Growth: The Key to a Lasting Recovery World Bank convenes a broad set of voices to underscore the urgency of the poverty challenge and the limited ability developing countries have to offset shocks through fiscal policy. It will highlight the policies that can support inclusive growth based on the World Bank’s country experience and knowledge work. David R. Malpass, President, World Bank Group; Lawrence H. Summers, President Emeritus and Charles W. Eliot University Professor, Harvard University; Makhtar Diop, Managing Director, IFC; Karima Ola, Lead, LeapFrog’s African Financial Services; Mayada El-Zoghbi, Managing Director, Center for Financial; Karima Ola, Partner, LeapFrog Investments; Mayada El-Zoghbi Managing Director, Center for Financial Inclusion; Susan Lund VP for Economics and Private Sector Development, IFC. Photo: World Bank /

The World Bank has just released its 2023 Logistics Performance Index report, which provides a measure of countries’ ability to move goods across borders with speed and reliability. The report comes after three years of unprecedented supply chain disruptions during the COVID-19 pandemic, when delivery times soared. The LPI, which covers 139 countries, measures the ease of establishing reliable supply chain connections and the structural factors that make it possible, such as the quality of logistics services, trade- and transport-related infrastructure, and border controls.

The report highlights the crucial importance of resilience and reliability in the performance of logistics. “Logistics are the lifeblood of international trade, and trade in turn is a powerful force for economic growth and poverty reduction,” said Mona Haddad, Global Director for Trade, Investment, and Competitiveness at the World Bank. “The Logistics Performance Index helps developing countries identify where improvements can be made to boost competitiveness.”

According to the LPI 2023 report, end-to-end supply chain digitalization, especially in emerging economies, is allowing countries to shorten port delays by up to 70% compared to those in developed countries. Moreover, demand for green logistics is rising, with 75 percent of shippers looking for environmentally friendly options when exporting to high-income countries.

However, the report also notes that most time is spent in shipping, and the biggest delays occur at seaports, airports, and multimodal facilities. Policies targeting these facilities can help improve reliability, including improving clearance processes and investing in infrastructure, adopting digital technologies, and incentivizing environmentally sustainable logistics by shifting to less carbon-intensive freight modes and more energy-efficient warehousing.

On average across all potential trade routes, 44 days elapse from the time a container enters the port of the exporting country until it leaves the destination port, with a standard deviation of 10.5 days. That span represents 60 percent of the time it takes to trade goods internationally.

The Logistics Performance Index report provides valuable information for policymakers and stakeholders involved in the logistics industry. It helps identify areas where countries can improve their logistics performance, thereby enhancing their competitiveness in the global marketplace.

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments