Who’s Inspecting Your Shipments?

In previous posts we have discussed the World Bank Logistics Performance Index for international trade. The Index also contains a domestic component as detailed below:

Domestic LPI

The Domestic LPI looks in detail at the logistics environments in 116 countries. For this measure, surveyed logistics professionals assess the logistics environments in their own countries. This domestic evaluation contains more detailed information on countries’ logistics environments, core logistics processes and institutions, and performance time and cost. This approach looks at the logistics constraints within countries, not just at the gateways, such as ports or borders. It uses four major determinants of overall logistics performance to measure performance:
• Infrastructure,
• Services,
• Border procedures and time, and
• Supply chain reliability.

Here is some of the data for the US from the 2014 report. The low % of physical inspections stands out.

Shipments meeting quality criteria (%) 86.67%
Number of agencies – exports 3
Number of agencies – imports 4
Number of documents – exports 3
Number of documents – imports 3
Clearance time without physical inspection (days) 1 days
Clearance time with physical inspection (days) 2 days
Physical inspection (%) 3.63%
Multiple inspection (%) 2.3%