Review of Logistics Service Regulations for Freight Forwarding Businesses

Regulatory frameworks on logistics
regulations are often opaque, especially in developing
countries, because of the complex nature of logistics
services. World Bank client countries have faced difficulty
finding the issues that hinder them from improving logistics
competence. Therefore, it is beneficial to understand how
the logistics service industry is regulated and what should
be addressed in building the regulatory framework to improve
logistics competence. This note proposes questions to be
addressed for beneficial regulations by reviewing existing
logistics service regulations in 14 countries, particularly
regulations for the freight forwarding industry. These
questions will help in assessing a regulatory framework and
identifying regulatory weaknesses. This note suggests that
the regulatory framework should take into consideration
national recognition of freight forwarding business, an
institutional arrangement with clear division of
responsibility among stakeholders, and streamlined but
flexible regulations adapted to the country context.