Significant Room for Improvement for Australian Logistics
This article was published by Ian Smith, CEO, CargoHound
AUSTRALIA has significant room for improvement according to the latest World Bank Logistics Performance Index (LPI) global rankings – particularly in relation to the timeliness of operations and border clearance.
Australia's overall LPI score of 3.79 placed us 19th from the 160 countries surveyed, and third in “Asia” behind Singapore (5th overall) and Hong Kong (9th Overall). The survey suggests there is clear room for improvement in the efficiency of border and customs clearance processes in Australia – where we were ranked 22nd.
Further, the ease of arranging competitively priced shipments, and the timeliness of shipments reaching their destination within the expected delivery time also fell “below par” with a ranking of 21st for each criteria. This may, however, be partially explained by our relative geographical isolation from trading partners.
To remain internationally competitive, improvements are also required in our trade and transport infrastructure (18), the competence and quality of our logistics services (17) and our ability to track and trace consignments (19).
The LPI is intended to provide feedback on the logistics “friendliness” of the countries surveyed both to help identify areas for improvement, and also to highlight to importers and exporters issues they may need to consider when executing their trade.
The LPI benchmark is created by the World Bank, who survey logistics providers and operators in 160 countries to provide a rank on a number of dimensions of supply chain performance, including infrastructure, quality of service, shipment reliability, and border clearance efficiency.
Germany was ranked first overall (for the third time), while Syria was ranked last. Countries like Kenya, India and China, all improved their previous performance in the Biannual report.
The top performing countries included:
- Upper Income: Germany, Luxembourg, Sweden.
- Upper Middle Income: South Africa, China, Malaysia.
- Lower Middle Income: India, Kenya, Egypt.
- Low Income: Uganda, Tanzania, Rwanda.
To view a full version of the report go to World Bank Logistics Performance Index