Abstract

This paper examines the issue of measuring logistics costs from an applied trade policy research perspective, as well as identifying logistics-intensive sectors. It focuses on currently available data at the macro-and firm-levels. This paper has two main aims. First, it provides a first overview of currently available data relevant to logistics, and suggests some preliminary applications. The second objective of this paper is to frame the issue of logistics cost measurement and data collection in terms of the types of inputs needed for applied trade policy research. The paper is organized as follows. The next section presents an overview of possible directions in applied trade policy research using logistics data. Section three examines existing data sources that can be used to measure domestic logistics costs, focusing on the national accounts, input-output tables, price comparisons, and firm-level data. Section four presents a new methodology for measuring international trade costs, and identifies the proportion of those costs due to logistics. Section five uses input-output data to identify logistics-intensive sectors in a range of countries. Section six concludes. This paper has explored a number of different data sources and methodologies in an effort to move forward on the analysis of logistics costs from a trade policy research perspective. In the future, it will be important to distinguish between data collection efforts that are industry-driven-such as estimates of total logistics costs in Gross Domestic Product (GDP)-and those that are research-driven. Moving further in this direction will help fuel research that identifies sectors in particular countries that are most sensitive to improvements in logistics performance, and which therefore will tend to expand relative to other sectors in the face of logistics sector reforms. From a policy and political economy point of view, it will be important to identify such sectors and make them aware of the potential role logistics can play in facilitating their growth. Document type: Book

Abstract

For the economy to attain its full potential, the Philippines requires an efficient water transport system. However, this is presently not the case. The domestic shipping industry is characterized by high costs, low quality of service, and a poor safety record. Logistics cost accounts for 24-53 percent of wholesale price, while shipping and port handling cost around 8 percent of wholesale price and 5 percent of retail price. Philippine domestic shipping is generally more expensive than in Malaysia or Indonesia, 2 other archipelagos. Moreover, it is more expensive to transport goods between 2 Philippine ports than between 2 Philippine ports via an international port. In the East Asia region, the Philippines trails behind its neighbors in various logistics performance and connectivity indices. For instance, in liner shipping connectivity, the Philippines ranked 66th out of 157 countries in 2013, and performs the worst among a group of East Asian comparators. Delays in shipment, slow cargo handling, and frequent accidents are the top complaints of businesses. In the East Asia Region, the Philippines has the highest absolute casualty rate and this is 40 percent higher than the second ranked country, Indonesia. On average, there are 228 ships involved in accidents and 303 casualties per year in the Philippines. In seeking to enhance competition in the delivery of domestic shipping services, this assessment has therefore focused particularly on measures that would increase the opportunities and incentives for new players to enter the market, and for existing operators to expand or vary the services they offer.

Abstract

Landlocked developing countries (LLDCs) are completely dependent on their transit neighbors infrastructure and administrative procedures to transport their goods to port. This publication provides a comprehensive ten-year review in order to assess the progress made in improving access of LLDCs to global markets, identify the remaining challenges faced by LLDCs, and present improved and innovative ways to overcome them. This publication is based on the practical knowledge from implementing the Almaty Program policies, shared by both of our institutions. It provides a snapshot of the economic trends in LLDCs, with regard to trade costs, connectivity constraints and trade diversification. It reviews the key access policies in the Almaty Program of Action framework that include infrastructure, transport and logistics services, regional integration, trade and transit facilitation. It combines data and substantial feedback from implemented projects and policy changes. The focus of the document is general in scope and does not include detailed economic or policy analysis of all the potential components of reforms. The publication is organized as follows: Chapter1: Economics of Landlockedness; Chapter 2: Connectivity Constraints; Chapter 3: Hinterland Connections; Chapter 4: Transit and Trade Facilitation, Regional Integration; Chapter 5: Physical Connectivity, Corridors. This document is based primarily on the experience of project implementation by the World Bank, and on analytical work on trade corridors and LLDCs, including reports and presentations on progress in implementing the Almaty Program of Action.

Abstract

This report presents the findings of the second edition of Connecting to Compete, a report on the new dataset for the 2010 Logistics Performance Index (LPI) and its component indicators. Based on a worldwide survey of global freight forwarders and express carriers, the LPI is a benchmarking tool developed by the World Bank that measures performance along the logistics supply chain within a country. The index can help countries identify challenges and opportunities and improve their logistics performance. The World Bank conducts the survey every two years. The 2010 LPI also provides a snapshot of selected performance indicators in nearly 130 countries, including expanded information on the time, cost, and reliability of import and export supply chains, infrastructure quality, performance of core services, and the friendliness of trade clearance procedures. The 2010 LPI and its indicators encapsulate the firsthand knowledge of movers of international trade, collected amid the economic turmoil of 2009. This information is relevant for policymakers and the private sector seeking to identify priorities for reform agendas. Findings include the following. First, except in high-income countries, the availability and quality of trade-related infrastructure is a major constraint to performance, but the specific priorities tend to vary across countries. Second, efficient border management and coordination of the various agencies involved in border clearance is increasingly important. Third, a major challenge for the international community is how to help the lowest performing countries benefit from an increasingly open global trading system.