Saturday 22nd Oct 2016 - Logistics Manager

UK scrapes into top ten logistics performers

The UK comes ninth in study of logistics performance by the World Bank. Using a series of indicators, the bank has created the Logistics Performance Index analysing a country’s capacity to connect firms, suppliers and consumers.

“Being able to connect to global markets is fast becoming a key aspect of a country’s capacity to compete, grow, attract investment, create jobs and reduce poverty,” said Danny Leipziger, World Bank vice-president for poverty reduction and economic management. “But for those unable to connect, the costs of exclusion are large and growing.”

The study puts transport and logistics hub Singapore first. At the other extreme are low-income countries, particularly those landlocked in Africa and Central Asia.

The report points out that all the developed countries did well. “Among the seven most industrialised nations, Germany ranks 3rd, Japan 6th, the UK 9th, Canada 10th, the US 14th, France 18th, and Italy 22nd out of a total of 150 countries covered. There are also significant differences among developing countries with similar incomes. China and Chile, for instance, rank 30th and 32 respectively, while countries in higher income groups, such as oil producers, tend to perform below their potential.”

“As a main driver of competitiveness, logistics can make you or break you as a country in today’s globalised world,” said Uri Dadush, World Bank trade director. “You can have very good customs, but poor performance in only one or two areas of the supply chain has serious repercussions in the country’s economic performance creating a perception of unreliability.”

The LPI is the first comprehensive cross-country assessment of logistics performance in 150 countries, based on a worldwide survey completed by more than 800 logistics professionals. It aggregates the performance in seven areas, from traditional ones, such as customs procedures, logistics costs (including freight rates), and infrastructure quality, to new areas like the ability to track and trace shipments, timeliness in reaching a destination, and the competence of the domestic logistics industry. The survey had the support and participation of the International Association of Freight Forwarders, the Global Express Association, the Global Facilitation Partnership, and the Turku School of Economics.

International LPI ranking

1. Singapore
2. The Netherlands
3. Germany
4. Sweden
5. Austria
6. Japan
7. Switzerland
8. Hong Kong
9. United Kingdom
10. Canada

Source: World Bank