Home » Maritime » RP an ‘over performer’ in logistics

AFTER saying the Philippines had one of the highest logistics costs in 2007, the World Bank in its 2010 Logistics Performance Indicators (LPI) study said the country was now one of the “over performers” in the area of logistics.

The 2010 LPI report looked at 155 countries and is the most comprehensive world survey of international freight forwarders and express carriers.

According to the report, the Philippines ranked 44th among countries that over performed in their efficiency of handing goods traded around the world, besting Vietnam (number 53) and Indonesia (number 75).

In 2007, the Philippines lagged behind its neighbors in terms of trade logistics competitiveness at number 65, behind Korea, Malaysia, Thailand, Indonesia, and Vietnam.

The LPI report said that among developing economies logistics performance transcends the level of per capita income.

“Many countries perform better than what their income level would suggest. The ten most significant over-performers include China (27), India (47), Uganda (66), Vietnam (53), Thailand (35), the Philippines (44), and South Africa (28),” the report said.

“Economic competitiveness is relentlessly driving countries to strengthen performance, and improving trade logistics is a smart way to deliver more efficiencies, lower costs and added economic growth,” WB chief Robert Zoellick said in the report.

Topping the 2010 edition of the LPI is Germany followed by Singapore, Sweden, the Netherlands and Luxembourg.

Completing the top 10 are Switzerland, Japan, United Kingdom, Belgium and Norway.

According to the LPI, high-income economies dominate the top logistics rankings, with most of them occupying important places in global and regional supply chains. By contrast, the ten lowest performing countries are almost all from the low and lower income groups.

The study also showed substantial “logistics gap” between rich countries and most developing countries but it finds positive trends in some areas essential to logistics performance and trade. Some of them include the modernization of customs, use of information technology, and development of private logistics services.

In the first edition of the LPI report in 2007, the Philippines had one of the highest logistics costs worldwide where a typical charge for a 40-foot export container or a semi-trailer runs to about $721 and takes 6.3 days to process. Import of the same container costs $794 and takes 5.3 days to process.

In contrast, exporting a 40-foot container costs a far lower $144 in Vietnam, $266 in Indonesia, $422 in Thailand, and $630 in South Korea. Malaysia’s export cost of $783 is one of the highest in the region.

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