On April 21, 2023, the World Bank published the 2023 Logistics Performance Index (LPI) report, which measures countries' performance in moving goods across borders quickly and reliably. This report on logistics services, the lifeblood of global trade, is of great importance following the supply chain disruptions experienced during the COVID-19 pandemic.

Now let's examine the scores of both Turkey and the top 10 countries in the 2023 report.

World Bank Logistics Performance Index 2023 Data

According to the LPI report, end-to-end supply chain digitalization in developing countries shortens port delays by up to 70% compared to developed countries. Additionally, demand for green logistics services is rising, and 75% of exporters are looking for green options when exporting to high-income countries.

Turkey ranks 42nd on the 2023 list, and its Logistics Performance Index (LPI) score is as follows:

CountryLPI ScoreCustoms ScoreInfrastructure ScoreInternational Shipments ScoreLogistics Competence, Quality ScoreTimeliness ScoreTracking ScoreTurkey3.43.03.43.43.53.63.5

The scores of the countries among the top 10 economies in the World Bank's 2023 Logistics Performance Index report are as follows:

CountryLPI ScoreCustoms ScoreInfrastructure ScoreInternational Shipments ScoreLogistics Competence, Quality ScoreTimeliness ScoreTracking ScoreSingapore4.34.24.64.04.44.34.4Finland4.24.04.24.14.24.34.2Denmark4.14.14.13.64.14.14.3Germany4.13.94.33.74.24.14.2Netherlands4.13.94.23.74.24.04.2Switzerland4.14.14.43.64.34.24.2Austria4.03.73.93.84.04.34.2Belgium4.03.94.13.84.24.24.0Canada4.04.04.33.64.24.14.1Hong Kong SAR, China4.03.84.04.04.04.14.2

Looking at previous years, no significant change is seen in the average LPI scores. The average LPI scores between the top 10 economies and the bottom 10 economies have changed as follows:

• 2007: Average of top 10 economies 4.1, average of bottom 10 economies 1.8

• 2010: Average of top 10 economies 4.0, average of bottom 10 economies 2.1

• 2012: Average of top 10 economies 4.0, average of bottom 10 economies 2.0

• 2014: Average of top 10 economies 4.0, average of bottom 10 economies 2.1

• 2016: Average of top 10 economies 4.1, average of bottom 10 economies 1.9

• 2018: Average of top 10 economies 4.0, average of bottom 10 economies 2.1

• 2023: Average of top 10 economies 4.1, average of bottom 10 economies 2.1

Where do Delays Happen in Logistics?

According to the 2023 report, the biggest delays occur at seaports, airports, and multimodal facilities. Improving policies aimed at these facilities, speeding up customs procedures, investing in infrastructure, and transitioning to digital technologies are crucial.

Efforts in the area of sustainable logistics are also supported by the transition to less carbon-intensive transportation and energy-efficient warehousing. In this way, significant steps will be taken both in economic growth and the fight against poverty, and the competitiveness of countries will increase.

How Can Turkey Improve Its Performance in the Future?

Developments and the digitalization process in the logistics sector can also have positive effects on Turkey's trade volume. The report published by the World Bank not only reveals Turkey's current situation in logistics services but also serves as a guide for improvements and developments that can be made.

In summary, Turkey can make the following moves to increase its logistics performance:

• Speeding up customs procedures and reducing red tape

• Prioritizing infrastructure investments, particularly developing seaports, airports, and multimodal facilities

• Transitioning to digital technologies, digitalizing the supply chain, and improving end-to-end processes

• Increasing incentives for green and sustainable logistics services, transitioning to transportation methods that will reduce carbon emissions, and adopting energy-efficient warehousing solutions

Conclusion

In conclusion, the World Bank's 2023 Logistics Performance Index report provides important insights into the significance of the logistics sector in world trade and how countries can increase their competitiveness in this field. Turkey's current situation and LPI scores highlight the crucial steps it needs to take to be more successful in international trade.

Turkey's success in logistics performance is of great importance for the country's economic future, and accelerating breakthrough initiatives in this area will bring major benefits.

Reference: World Bank 2023 Logistics Report.