LPI (Logistics Performance Index)
LPI (Logistics Performance Index)
The impact of automated manifest systems on logistics performance — and where Turkey stands
It has been 16 years since the AMS (Automated Manifest System) was introduced in the United States, followed by Europe's implementation of the ENS (Entry Summary Declaration). Turkey, in turn, launched its own "arrival notification" system to achieve similar outcomes. The core goals behind the American model were clear from the start: risk analysis — the ability to intervene at an early stage — and transparency.
Creating the conditions for free and fair competition, and pioneering digitalization and transparency, is the responsibility of the regulatory authority.
Automated Manifest Systems: A Timeline
AMS (United States)
The US Automated Manifest System requires electronic submission of cargo manifests 48 hours before a vessel departs from its origin port. Its primary objectives are risk analysis and supply chain transparency.
ENS (European Union)
The EU's Entry Summary Declaration system operates on similar principles, requiring advance cargo data to strengthen security screening and border control across member states.
Arrival Notification (Turkey)
Turkey's arrival notification framework mirrors these global initiatives, aiming to increase transparency and predictability across logistics operations.
Risk Analysis in International Trade
International trade revolves around three core elements: the buyer, the seller, and the product. Dozens of additional factors — services, infrastructure, finance, government, and transportation — orbit these three fundamentals.
Regardless of the delivery terms agreed upon in a sea freight shipment — whether factory or port delivery — once the goods are loaded onto the vessel, the carrier issues a bill of lading (B/L) to the shipper as proof of receipt and title to the cargo.
Risk analysis in practice: Once goods leave the country of origin, the conditions for the buyer are irreversibly locked in. The US system, however, operates 48 hours before the vessel departs from the loading port — giving authorities the ability to reject a shipment before it even boards: effectively telling the carrier, "Do not load this cargo."
Advantages: Developed vs. Developing Countries
- Sufficient lead time for customs clearance
- Demurrage free-time requests are rare
- Transparent and predictable processes
- FMC oversight and advisory decisions
- Frequent requests for extra demurrage free time
- Customs clearance under time pressure
- No free time for container storage
- Unclear and prolonged processes
FMC Regulations and Their Impact
In 2019, the Federal Maritime Commission (FMC) issued a significant advisory ruling: demurrage and detention charges should not begin until the container is actually retrievable by the consignee — including weekends and public holidays. While not legally binding, FMC guidance carries considerable weight across carriers, terminal operators, and trade companies alike, as it is widely understood to represent the common interest of the industry.
Conclusion: What Turkey Must Do to Improve Its LPI Ranking
When competition takes place on a level playing field, significant amounts of demurrage and detention fees stop flowing overseas. Preventing this unnecessary foreign currency outflow can itself be counted as a foreign exchange-generating service. A less obvious — but equally meaningful — byproduct: Turkey's LPI ranking could improve by 15 to 20 positions.
Domestic carriers currently hold less than 10% of Turkey's container shipping market. Increasing that share and improving overall logistics performance requires a decisive transition toward transparent, digital, and predictable systems.