It is vital therefore that all services associated with logistics are addressed correctly as doing so may well have a positive effect on the economies at macro as well as micro level impacting the overall success of trade and international business.

The varied set of services associated with Logistics, from Transport and Freight Forwarding through Distribution and Retail are vital to enabling the efficient operation, economy-wide, of the traded goods sector and specifically to facilitating developing country entry into cross-border goods supply chains. 

The export-led East Asian growth model has repeatedly demonstrated that efficient provision of services relevant to the export of goods can be critical to developing country goods export outcomes.

Inefficiencies among domestic services providers will not only cut them off from direct services export opportunities but also prejudice the export competitiveness of local goods producers.

For global value chains (GVC) to function and be economically viable, firms must have access to price-efficient quality services inputs. Breaking down GVC production costs highlight the overall importance of services. The new OECD/WTO Trade in Value Added data provides clear evidence of the extent of services value-added in a variety of manufacturing industries.

On average, the value of traded goods embodies as much as 25 per cent services content.

In the goods sector, costs associated with transport and distribution have been shown to be very significant accounting for over 10% and often closer to 15 % of the value added in most manufacturing industries.

The transport sector is consequently often seen as a primary key to efforts to move up the value chain in other traded goods sectors.

As the manufacturing process become more complex, so it becomes even more important to be able to move both inputs and outputs across borders rapidly, at low cost, and with as little risk as possible. Such operations are only possible in an environment where the transport sector exhibits high performance.

Logistics are also critical as is the efficiency of related border operations such as efficiency of operation of port/airport facilities and accompanying services (ICT services, automation in customs clearance procedures, inventory cost systems and cargo handlers).