What is the Logistics Performance Index (LPI)?

What are the criteria for the Logistics Performance Index?

1. Customs Clearance: Efficiency of the clearance process (i.e., speed, simplicity, and predictability of formalities) by border control agencies, including customs.  
2. Quality of Logistics Infrastructure: Quality of trade and transport-related infrastructure (e.g., ports, railroads, roads, information technology).
3. International Shipping: ease of arranging competitively priced shipments.
4. Logistics Competence: Competence and quality of logistics services (e.g., transport operators, customs brokers).
5. Tracking and Tracing: Ability to track and trace consignments.
6. Timeliness: Timeliness of shipments in reaching their destination within the scheduled or expected delivery time.
   
   
   

How is the Logistics Performance Index measured?

What are the benefits of the Logistics Performance Index?

• Supply Chain Visibility: LPI scores provide better visibility into supply chain activities, helping to improve and manage supply chains flexibly and efficiently.
• Enhanced decision-making: The LPI offers deeper insights for supply chain managers, enabling them to make more accurate decisions and build more flexible and profitable strategies. Using LPI data for decisions related to shipping and distribution enhances efficiency and profitability.
• Competitive Advantage: A country's high LPI reflects its companies' success and high competitiveness when exporting goods to other countries.
• More Jobs and Opportunities: Countries with higher LPI attract foreign investments. These investments reflect on the country's economy which creates new jobs and more significant opportunities.
• Affordable Goods and Services: Countries with a high LPI, efficient logistics, and alternative services help companies lower costs, offering more competitive prices to consumers.

What are the challenges of the Logistics Performance Index?

1. Subjectivity: The LPI is based on perceptions or surveys, which may not accurately reflect a country's logistics situation. Opinions can vary among logistics professionals, and these views may differ from the actual logistics performance.
2. Limited Scope: The LPI primarily focuses on infrastructure and supply chain performance, not considering external factors such as regulations and government policies that can significantly affect logistics operations. Therefore, the LPI should be used alongside other metrics to understand a country's logistics capabilities comprehensively.

Egypt's Logistics Performance Index Between 2018 and 2023

What factors contributed to improving Egypt's logistics performance rating?

Analysis of Logistics Performance Results

The report identifies four performance groups:

1. Logistics-Friendly: The top-performing countries, primarily high-income nations, have 25 countries in this category.
2. Consistent Performers: Countries performing better than most, with 25 countries in this category.
3. Partial Performers: Countries facing logistical constraints, often seen in low- and middle-income countries, with 46 countries in this category.
4. Poor Logistics Performers: The least developed countries, with 43 countries in this category.

What are the top 15 countries in the 2023 Logistics Performance Index?

1. Singapore - 4.3
2. Finland - 4.2
3. Denmark - 4.1
4. Germany - 4.1
5. Netherlands - 4.1
6. Switzerland - 4.1
7. Austria - 4.0
8. Belgium - 4.0
9. Canada - 4.0
10. Hong Kong SAR, China - 4.0
11. Sweden - 4.0
12. United Arab Emirates - 4.0
13. France - 3.9
14. Japan - 3.9
15. Spain - 3.9
    
    

How does Nowlun play a role in optimizing Egypt's LPI?

1. Providing instant ocean freight prices from +30 shipping lines.
2. Streamline logistics process by booking all freight shipments in seconds.
3. Offering a comprehensive shipments management system that helps shippers monitor all their shipments in a single dashboard view.

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