The World Bank recently published its latest report ranking countries according to their logistics performance. The 2023 edition evaluates 139 countries using a measurement tool called the Logistics Performance Index (LPI). This index is based on a questionnaire sent to operators, as well as on key performance indicators (KPIs) measuring the speed and fluidity of world trade.
The six evaluation criteria are: transport infrastructure, efficiency of customs management, quality of logistics services, transport opportunities, ability to track and trace goods, and ease of organizing shipments at a competitive price.
First published in 2007, the LPI has become an essential benchmarking tool for comparing logistics performance between different countries. This year, France moved up three places in five years, from 16th to 13th position.
Logistics Performance Index
Traditionally published every two years, the World Bank’s Global Logistics Performance Rankings were delayed by five years for their most recent edition.
This interruption is mainly due to the disruption caused by the Covid-19 crisis and the implementation of a new evaluation methodology.
In the past, the World Bank relied on quantitative and qualitative questionnaires to assess cross-border logistics. However, with the recent revision of the methodology, domestic market performance is now deduced from visibility platform data.
There are two important facts to bear in mind in this 2023 ranking.
Firstly, on all the trade routes considered, it takes an average of 44 days from the entry of a container into the port of the exporting country to its departure from the port of destination, with a standard deviation of 10.5 days. It should be noted that for 60% of this time, the container remains loaded on a ship.
Secondly, according to the report, the complete digitization of the supply chain, particularly in developing economies, enables these countries to reduce port operation times by up to 70% compared with developed economies.
World ranking of top logistics performers
Voici le top 20 des pays selon leur performance en logistique :
- Singapore : LPI score of 4.3
- Finland: LPI score 4.2
- Denmark: LPI score 4.1
- Germany: LPI score 4.1
- Netherlands: LPI score 4.1
- Switzerland: LPI score 4.1
- Austria: LPI score 4.0
- Belgium: LPI score 4.0
- Canada: LPI score 4.0
- Hong Kong, China: LPI score 4.0
- Sweden: LPI score of 4.0
- United Arab Emirates: LPI score 4.0
- France: LPI score 3.9
- Japan: LPI score 3.9
- Spain: LPI score 3.9
- Taiwan, China: LPI score 3.9
- South Korea: LPI score 3.8
- United States: LPI score 3.8
- Australia: LPI score 3.7
- China: LPI score 3.7
Europe tops the ranking
On a scale of up to 5 points, Singapore posted a composite score of 4.3, notably achieving the best score in the ranking (4.6) on the infrastructure criterion.
Now ranked 13th in the world, compared with 16th in 2018, France has an average score of 4.0. It is penalized on the criteria of customs and ease of organizing shipments.
The best scores are mainly concentrated in Europe. In the top 5, Singapore is followed by four European countries: Finland, Denmark, Germany and the Netherlands, in that order.
Some countries at the top of the ranking saw their scores fall slightly: Germany, Japan and the United States. Others saw their scores rise: Singapore, Finland, Switzerland, Canada and Taiwan.
African countries dominate the middle of the ranking. The continent’s leading country is Botswana, in 23rd place, tied with South Africa.
The lowest-ranked countries are Libya, followed by Afghanistan, Somalia, Haiti and Cameroon. These countries scored between 1.9 and 2 points. Their internal political situation may partly explain this position.
CERL: Your logistics partner
The World Bank report highlights the wide fluctuations in performance, even among the most developed countries. This is illustrated by the difference in container processing time between the USA (7 days) and Singapore (3 days). Two main trends dominate the evolution of the logistics sector, particularly among the top-ranked countries: the greening of logistics circuits and the complete digitization of the supply chain.
CERL is a sea and air freight forwarder serving industrial customers. We specialize, in particular, in industrial projects and oversized parcels. Our company is developing in markets where innovation and expertise are paramount. CERL’s teams are experts in multimodal and exceptional logistics. Don’t hesitate to contact us to discuss your goods flows!
