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Business News of Wednesday, 16 May 2012

Source: GNA

Trade Logistics Performance Dips

Progress in trade logistics performance slowed down over the last two years amid the global recession but countries which pursued aggressive reforms continued to improve their performance, according to the World Bank’s latest survey on trade logistics.

Singapore is the top performer among the 155 economies included in the Logistics Performance Indicators (LPI), which are part of the Connecting to Compete 2012: Trade Logistics in the Global Economy report made available to the GNA.

Countries like Chile, China, India, South Africa, Morocco, Turkey, and the United States, all improved their previous performance according to the study, which is based on a comprehensive world survey of international freight forwarders and express carriers.

“Trade logistics is key to economic competitiveness, growth, and poverty reduction,” said Otaviano Canuto, World Bank Vice President for Poverty Reduction and Economic Management (PREM).

“Unfortunately, the logistics gap between rich and poor countries continues, and the convergence trend experienced between 2007 and 2010 has stalled as events like the global recession, and the European debt crisis shifted attention from logistics reform.”

A multidimensional assessment of logistics performance, the LPI compares the trade logistics profiles of 155 countries and rates them on a scale of 1 (worst) to 5 (best).

The ratings are based on 6,000 individual country assessments by nearly 1,000 international freight forwarders, who rated the eight foreign countries their company serves most frequently.

The LPI’s six components include: The efficiency of the clearance process (speed, simplicity, and predictability of formalities) by border control agencies, including customs.

The quality of trade- and transport-related infrastructure (ports, railroads, roads, information technology).

Others are the ease of arranging competitively priced shipments and the competence and quality of logistics services (transport operators, customs brokers).

And finally the ability to track and trace consignments and the frequency with which shipments reach the consignee within the scheduled or expected delivery time.

South Africa was ranked 23 and scored 3.67 and 85.5 per cent with Morocco coming 50th, clocked 3.03 and 65 per cent.

Ghana was ranked 108 after scoring 2.51 returning 48.2 per cent with Nigeria appearing 121st, clocking 2.45 and scoring 46.3 per cent.

The last three positions were occupied by Haiti, Djibouti and Burundi, who scored 153-2.03-32.8 per cent; 154-1.80-25.5 per cent and 155-1.61-19.5 per cent in that order.**

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