GlossaryEN1 min readUpdated: Jun 26, 2026

Logistics Performance Index

Freight forwarders, shippers, and government agencies use the Logistics Performance Index (LPI) to benchmark the supply chain efficiency of countries against one another.

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Last updated: 26 June 2026Published: 27 January 2026

Source: https://www.worldbank.org/en/topic/trade/brief/logistics-performance-index

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Definition & Explanation

Freight forwarders, shippers, and government agencies use the Logistics Performance Index (LPI) to benchmark the supply chain efficiency of countries against one another. The World Bank's LPI—the most widely referenced version—scores countries across six dimensions: customs clearance efficiency, trade and transport infrastructure quality, ease of arranging competitively priced shipments, logistics services competence, consignment tracking capability, and delivery timeliness. Each dimension is rated on a scale of 1 to 5, producing an overall country ranking used to compare trade environments. Practitioners draw on LPI results when selecting trade corridors, assessing suppliers, or evaluating new market entry. A low LPI score signals elevated transit risk and likely border delays—actionable intelligence for any supply chain planner working across emerging markets. Unlike purely infrastructure-based indicators, the LPI incorporates the lived experience of logistics operators, capturing procedural friction alongside physical conditions.

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