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Liner Shipping Index & Logistics Performance

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Dated: 18/07/2018

Β 

LINER SHIPPING CONNECTIVITY INDEX AND LOGISTICS PERFORMANCE INDEX

 

TheΒ Liner Shipping Connectivity IndexΒ (LSCI) has been developed by the United Nations Conference on Trade and Development (UNCTAD). This index measures how well a country is integrated in the liner shipping network.

β€œLiner shipping” refers to the transport of goods via containers. The LSCI focuses exclusively on liner shipping.

The parameters of the LSCI

The LSCI includes 5 parameters:

  1. Fleet deployment:this is the number of ships per year that go to a country. This can be for export, import or transfer activities.
  2. Carrying capacity:the quantity of containers (TEUs) put into service for a country. Fleet deployment says with what frequency ships go to a country. Carrying capacity covers the actual capacity a country has to process containers. It is likely that a country with a high capacity can facilitate international trade.
  3. Liner companies:how many liner companies sail on a port of a country.
  4. Liner services:how many companies offer a service that increases the rotation of containers in a country.
  5. Maximum vessel size:how big is the largest ship destined for a country. This is a good indication of economics of scale, because a port must be equipped to accept that large ship. The more economies of scale, the lower the trade costs.Β 

The index can be found in the Review of Maritime Transport. The index has no unit. The index is calculated annually. Each year, the 5 factors are calculated for each country. Each factor of a country is shared by the maximum value that has been achieved for that factor in a country. The average of these factors is then taken into account per country. If the value of that result is multiplied by 100, a percentage value is obtained.Β 

Comparison between the LPI and the LSCIΒ 

Both the LPI (Logistics performance index) and the LSCI are indexes that provide information about the competitiveness of a country in the field of transport and logistics. Moreover, they are strongly correlated (.071). Nevertheless, there are some major differences between the LPI and the LSCI:

  • the main differences is that LPI is not limited to liner shipping alone. It integrates the entire supply chain. So national trade is also included here.
  • the LPI is based on surveys of 1000 professionals in the logistics field. It therefore contains no hard date, rather perceptions and estimates. The LSCI is based on 100% facts.

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Courtesy:Β United Nations Conference on Trade and Development (UNCTAD)

1.Β The authors view are based on his/her interpretation of the relevant information/documents, applicable law, and government policy and there is no assurance that a court or tribunal or regulatory body or other governmental authority may not interpret it differently.
2.Β Β We are not responsible for updating or revising this article on account of any change in law or interpretation thereof or a change in events or circumstances informed or occurring after the date of this article unless specifically requested for it.
3.Β Our advice should not be taken or used out of context or reproduced for any other purpose or transaction.Β Views expressed in this update are strictly personal, based on our understanding of the underlying law.
4.Β We are not responsible for any injury, loss or cost arising to any person who refers to this update and acts or refrains from any act accordingly. We would suggest that detailed legal advice must be sought before relying on this update.
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