Global Logistics
Don’t know how I missed this one, but I finally glanced at the World Bank’s 2010 Logistics Performance Index. Realizing that bad logistics can bring trade and development to a standstill, the World Bank ranks countries according to customs efficiency (including any border controls, not just official customs clearance), trade and transportation infrastructure (e.g., port facilities, automation, etc.), and quality of trade and transport services (e.g., trucking to inland destinations). I know you are in suspense, so here are the Top Ten for 2010:
1. Germany
2. Singapore
3. Sweden
4. Netherlands
5. Luxembourg
6. Switzerland
7. Japan
8. United Kingdom
9. Belgium
10. Norway
There are a few notables missing. The United States comes in 15th, preceded by Hong Kong and Canada. Taiwan finishes 20th and China follows at a creditable 27th, just ahead of South Africa and Malaysia.
How quickly can you get it there? (photo: Wmeinhart)
As an American, I need to look at the U.S. scores more deeply. On customs processes (efficiency of the clearance process), we rank 15th, well behind the leaders Luxembourg and Singapore. They have the advantage of much smaller operations, plus they don’t have Homeland Security to cope with. The United States came out better than I would have expected on infrastructure, finishing 7th – behind Germany, Netherlands, Norway, Singapore, Japan and Switzerland. In a category called logistics quality and competence (efficiency of logistics services), the U.S. came in 11th; Switzerland was the clear winner. Our best showing was in tracking and tracing, 5th behind Switzerland, Belgium, Sweden and Germany. The United States was 16th in timeliness (do shipments reach consignees within expected delivery times?), which I assume reflects congested, fairly shallow ports and the time needed for security.
The United States falls down on the ease of arranging competitively-priced international shipments. We come in a dismal 36th, trailing the leaders Singapore, Sweden and Australia – and sandwiched between Poland and Italy. I’m not sure what to make of this one. Is this a consequence of the Jones Act, which eliminates foreign competition on ocean shipments or air freight between U.S. ports and cities? That’s a huge issue for us in Hawaii because it jacks up the price of anything shipped to us from the U.S. mainland. Proponents of the Jones Act argue that the Act is needed to secure reliable shipping. Hmmm … at least 35 countries seem to have reliable and lower cost shipping without a Jones Act.
For the record, and because I know you are dying to find out, the world’s Bottom Ten for logistics are:
146. Sudan
147. Nepal
148. Iraq
149. Guinea-Bissau
150. Cuba
151. Rwanda
152. Namibia
153. Sierra Leone
154. Eritrea
155. Somalia
