Possibilities of using Incoterms clauses in a country logistics performance assessment and benchmarking

Đurđica Stojanović and Jelena Ivetić

Transport Policy, 2020, vol. 98, issue C, 217-228

Abstract: This study aims to contribute to the improvement of a country's transport and logistics (TL) performance assessment by exploring the possibility of using International commercial terms (Incoterms) clauses in international sales contracts. Incoterms clauses are commercial terms that clearly determine sellers' logistics commitments. They are also the “channels” that connect trade and logistics. The research explores the relationship between the international TL performance indicators and the Incoterms score (IS) which represents the extent of sellers' logistics commitments in bilateral trade at a national level. As per empirical results, the logistics performance indexes (LPIs) show the significant impact of a country's logistics performance on the IS. The country's economic development is also correlated with the IS and the domestic logistics performance indicators. This correlation is not seen with regards to the global competitiveness of transport infrastructure. Additionally, while the geographic distance does not have a direct correlation, it impacts buyers' or sellers' obligations, when considered along with the LPIs in the gravity model.

Keywords: Incoterms clauses; International logistics; Seller's logistics commitments; Transport and logistics performance; Assessment; Benchmarking (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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DOI: 10.1016/j.tranpol.2020.03.012

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