World Bank on 1 July 2016 released the Logistics Performance Index 2016 titled ‘Connecting to compete: 2016: Trade Logistics in the Global Economy.’ The 2016 Logistics Performance Index (LPI) allows for comparisons across 160 countries.
The 2016 LPI is an interactive benchmarking tool created to help countries identify the challenges and opportunities they face in their performance on trade logistics and what they can do to improve their performance.
Findings of the World Bank’s biennial report
Germany tops the 2016 rankings and is followed by Luxembourg, Sweden, Netherlands, and Singapore. Hong Kong SAR, China was ranked at 9th position while United States was placed at 10th Position in the list of rankings. Mainland China was placed at 27th position.
Syrian Arab Republic was ranked at 160th position in the list.
In context of India
• India’s ranking jumped from 54 in 2014 to 35 in 2016.
• India is ahead of comparatively advanced economies like Portugal and New Zealand.
• In 2016, India’s international supply chain efficiency was at 75 percent of top-ranked Germany. This is an improvement over the 66% efficiency when compared to the leader (again Germany) in 2014.
• The improvement was credited to recent reforms made into practice in the country like
a) Single Window Interface for Trade (SWIFT)
b) Electronic messaging system between Shipping lines and Custodians for electronic delivery order
c) Filing of import and export declarations and manifests online with digital signature
d) Extension of Customs’ risk management system to other regulatory agencies to ensure risk-based inspection
e) Reduction of documents required for export and import
f) Extension of 24x7 customs clearance facilities to 19 seaports and 17 air cargo complexes
g) Removal of limit on the number of consignments released under direct delivery and many more
India’s performance on the core pillars
India’s performance on the six core pillars of logistics performance Index that is used to rank the countries by World Bank in its study is
• The ability to track and trace consignments: From 57 to 33
• The quality of trade and transport infrastructure: From 58 to 36
• The competence and quality of logistics services: From 52 to 32
The six core pillars of logistics used to rank the nations includes
• The efficiency of customs and border management clearance
• The quality of trade and transport infrastructure
• The ease of arranging competitively priced shipments
• The competence and quality of logistics services
• The ability to track and trace consignments
• The frequency with which shipments reach consignees within scheduled or expected delivery times
Logistics Performance Index
The Logistics Performance Index is an interactive benchmarking tool created to help countries identify the challenges and opportunities they face in their performance on trade logistics and what they can do to improve their performance.
The LPI consists of both qualitative and quantitative measures and helps build profiles of logistics friendliness for these countries. It measures performance along the logistics supply chain within a country and offers two different perspectives: international and domestic.
Now get latest Current Affairs on mobile, Download # 1 Current Affairs App
DISCLAIMER: JPL and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.