What is the Logistics Performance Index?
The LPI is an interactive benchmarking tool created to help countries identify the Connecting 2023
challenges and opportunities they face in their performance on trade logistics and what
they can do to improve their performance. The LPI is based on two components: First,
a worldwide survey of international logistics operators on the ground (global freight to
forwarders and express carriers), providing feedback on the logistics “friendliness” of
the countries with which they trade. The International LPI 2023 allows for comparisons
across 139 countries. Compete
Second, this edition introduces indicators derived from global tracking database. They
measure speed and delays for container, postal and air freight activities. They complement
the main indicator but do not enter its score. Hence logistics performance is measured
from two different perspectives: one based on the perceptions of international logistics
professionals assessing their partner countries, the other one measuring the actual speed
of global trade by using supply chain tracking information.
Trade Logistics in the
Global Economy
This is the seventh edition of Connecting to Compete, a report
summarizing the findings from the new dataset for the Logistics
Performance Index (LPI) and its component indicators. The
2023 LPI encapsulates the firsthand knowledge of movers of
international trade and evidence from supply chain tracking data.
This information is relevant for policymakers and the private
sector seeking to identify reform priorities for trade and logistics
infrastructure. Findings include:
o Notwithstanding the pandemic-induced disruptions to shipping
and the global supply chain crisis, average overall scores in
the LPI 2023 were roughly the same as in the last survey in
2018.
o The new indicators point to widespread differences in delays
and supply chain reliability across the World. Several countries
experience much larger delays than advanced and emerging
economies. Binding constraints for low performances may be
traced to infrastructure, productivity, or clearance procedures.
o The survey confirms growing demand for green logistics
options, which lessen the carbon footprint of supply chains
and keep trade moving.
The Logistics Performance Index and Its IndicatorsConnecting to Compete 2023
Trade Logistics in an Uncertain Global Economy
The Logistics Performance Index and Its Indicators(c) 2023 The International Bank for Reconstruction and Development/The World Bank
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and Development/The World Bank or the governments they represent.
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Washington, DC. Table of contents
Acknowledgementsvi
Abbreviationsvii
Key messagesix
Policy highlightsxi
Executive summary1
Key changes in global supply chains since 2018 and implications for the 2023
Logistics Performance Index7
Understanding logistics performance and its determinants is now more important than
ever7
Container shipping disruptions in 2020–22 7
Air freight market disruptions in 2020–22 9
The rapid emergence of e-commerce as an important channel for cross-border trade 9
The 2023 LPI measures structural factors of performance rather than supply chain
disruptions9
The 2023 Logistics Performance Index 11
How to interpret the LPI 11
Features of the 2023 survey 11
Key findings of the 2023 LPI survey 12
The dynamics of LPI scores over 2012–23 15
What is the impact of the supply chain crisis? 15
Logistics performance is determined by more than income 15
Supply chain lead time around the world: Where are the delays? 17
Lead time dispersion and supply chain reliability 17
Dwell time and logistics performance 21
What causes long port delays? 22
Which interventions help reduce these delays? 24
Logistical constraints in landlocked developing countries 24
Connectivity and logistics performance in small maritime economies 25
Conclusions27
Global supply chains have turned out to be surprisingly resilient during the recent
disruptions27
The top and bottom performers: Performance is steady or improving, but the gap
persists27
Consistency is an important driver of logistics performance 27
CONNECTING TO COMPETE 2023 TRADE LOGISTICS IN AN UNCERTAIN GLOBAL ECONOMY iii