The International Logistics Performance Index (LPI) is based on components which are chosen based on theoretical and empirical research and practical experience of logistics professionals involved in international freight forwarding. These components are:
- The efficiency of customs and border management clearance (Customs)
- The quality of trade and transport infrastructure (Infrastructure)
- The ease of arranging competitively priced shipments (Ease of arranging shipments)
- The competence and quality of logistics services—trucking, forwarding, and customs brokerage (Quality of logistics services)
- The ability to track and trace consignments (Tracking and tracing)
- The frequency with which shipments reach consignees within scheduled or expected delivery times (Timeliness)
The LPI uses standard statistical techniques to aggregate the data into a single indicator that can be used for cross-country comparisons.
Germany with a score of 4.12 ranks highest while Somalia with 1.77 ranks lowest.