Which new element was incorporated in the 2023 edition of the Logistics Performance Index (LPI)?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. It includes indicators measuring trade speed using big data.
The 2023 edition of the Logistics Performance Index (LPI), published by the World Bank, incorporated a groundbreaking new element: indicators derived from big data.
For the first time, the LPI moved beyond traditional survey-based assessments by using real-time datasets to measure the actual speed of trade. These indicators track the movement of shipments, providing granular data on maritime shipping, container tracking, and postal and air freight activities. This addition offers more precise insights into supply chain bottlenecks and 'dwell times' at ports.