Logistics Performance Index

The Logistics Performance Index (LPI)^[1] is an interactive benchmarking tool created by the World Bank 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.^[2] It is the combination of the weighted average of the country scores on six key dimensions: customs performance, infrastructure quality, ease of arranging shipments, logistics services quality, consignments tracking and tracing and timeliness of shipments as well as practical data measuring logistics efficiency. This measure indicates the relative ease and efficiency with which products can be moved into and inside a country.^[3] Singapore and Finland are the most efficient and highest ranked LPI countries as per the 2023 LPI.^[4]

The Logistics Performance Index was reported by the World Bank every two years from 2010 to 2018 with a break in 2020 due to the COVID-19 pandemic and a restructuring of the index methodology, eventually coming out only in 2023. The LPI is based on a worldwide survey of stakeholders on the ground providing feedback on the logistics "friendliness" of the countries in which they operate and those with which they trade. Since 2023 the LPI incorporates certain KPI and Big Data to complement the results of the survey.^[5]

LPI results have been used in many policy reports and documents prepared by multilateral organizations and findings from the index provide a worldwide general benchmark for the logistics industry and for logistics users.^[6] LPI results have also been embraced by the academic community.