Liner Shipping Index & Logistics Performance

19/07/2018

 

 

Dated: 18/07/2018

 

LINER SHIPPING CONNECTIVITY INDEX AND LOGISTICS PERFORMANCE INDEX

 

The Liner Shipping Connectivity Index (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.

“Liner 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. 

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. 

Comparison between the LPI and the LSCI 

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.

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

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Disclaimer: Please refer to the official government sources before effecting any decision