METHODOLOGICAL NOTE | VERSION 1.

Total Transport and

Logistics Cost (TTLC)

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 i
SEPTEMBER 2020

Comments and corrections:

Jean-François Trinh Tan - [Link]@[Link]

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 ii
 CONTENTS
THE GLOBAL ALLIANCE FOR TRADE FACILITATION iv

FOREWORD v

ACKNOWLEDGEMENTS vi

ABBREVIATIONS & ACRONYMS vii

EXECUTIVE SUMMARY 1

1. DIRECT AND INDIRECT COSTS: DEFINITION, IMPORTANCE & GAPS 2

The importance of time and supply chain reliability for trade 2
A review of existing methodologies 3
Proposing a new approach 4
2. TTLC FRAMEWORK 5

Analytical framework 5
Operationalisation of the framework 7
3. TTLC SURVEY METHODOLOGY 10

Sample selection 10
Survey administration
 11
Sample size 11
Survey instrument 12

Survey limitations 12
4. COMPUTATION OF THE TTLC RESULTS 13
Data computation and aggregation 13
Data management and imputation 13
5. TTLC IMPLEMENTATION 14
Phase 1 – Inception 14
Phase 2 – Data collection 15
Phase 3 – Data analysis 15
Phase 4 – Reporting 15
APPENDIX - TTLC COMPUTATION STRUCTURE 17
IMPORT TIME 18
EXPORT TIME 19
IMPORT COSTS (DIRECT & INDIRECT) 21
EXPORT COSTS (DIRECT & INDIRECT) 24
REFERENCES 27

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 iii
 The Global Alliance for Trade Facilitation is a Alliance projects help to create an environment where
collaboration of international organisations, businesses can trade more easily, with predictable
governments and businesses working to help procedures, streamlined regulations and modern
developing and least developed countries implement automation.
the World Trade Organization’s Trade Facilitation
Agreement. We do it by bringing together governments When cross-border trade is simple, fast and cost-
and businesses as equal partners to address delays and effective, it can create new business opportunities,
unnecessary red-tape at borders and deploy targeted enable greater economic and social development and
reforms that deliver commercially quantifiable results. reduce poverty.

DONORS

MINISTRY OF FOREIGN AFFAIRS

OF DENMARK

HOST ORGANISATIONS IMPLEMENTING PARTNER

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 iv
 FOREWORD
The Alliance was conceived as a data-driven initiative, The TTLC is primarily utilised by the Alliance as an
as it aims to deliver projects that lead to quantifiable impact assessment tool. However, the methodology and
and commercially meaningful reductions in the time results can be used for numerous applications, including
and cost of cross-border trade. To achieve such a goal, the diagnostic of trade barriers (which is also carried
the Alliance utilises and collects extensive and reliable out by the Alliance as needed) and to track progress in
data to both inform the design of its projects and the implementation of trade facilitation reform. Results
assess their impact. can also be used as inputs to assist in the estimation
of the impacts of trade facilitation interventions on the
The Alliance also values and leverages the expertise of time and cost of trade in a given country.
its business partners. In doing so, it adopted and further
developed the Total Trade and Logistics Cost (TTLC) The purpose of this document is to present the
methodology, originally developed by A.P. Møller – conceptual and methodological foundations of
Mærsk A/S, to measure the direct and indirect costs of the TTLC and offer a transparent perspective of its
trading across borders and assess the potential returns opportunities and limitations. As the Alliance scales
of trade facilitation interventions. the deployment of the TTLC methodology through its
projects, the lessons learned from each deployment will
There are numerous methodologies available for be actively sought to guide periodic revisions of the
measuring the performance of supply chains, albeit methodology and ensure continuous improvement.
with varying scopes of analysis. The TTLC differentiates
itself in its ability to assess trade costs holistically by
taking into consideration not only the direct costs
associated with import and export processes, but also
by quantifying the indirect costs induced by long lead
times, delays and unpredictability in the supply chain.

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 v
 ACKNOWLEDGEMENTS
The TTLC Methodological Note was prepared by In addition, the methodology was peer reviewed
Jean-Francois Trinh Tan, Trade Analyst (WEF), under by external experts. For their helpful suggestions,
the coordination of Barbara Ramos, Knowledge Lead comments and support, we would kindly like to thank
(WEF) and the general guidance of the Alliance Matthias Busse (Ruhr University of Bochum), Jan
Management Team and its Executive Director, Hoffman (UNCTAD), Allan Lerberg Johansen (A.P.
Philippe Isler. Møller – Mærsk A/S), Derek Green and Essa Al Saleh
(Agility Global Integrated Logistics).
The document was reviewed by a cross-organisational
taskforce composed of Wayne Amago Bacale (WEF),
Karl Bartels (GIZ), Maren Bremer (GIZ), Aurelio Garcia
(CIPE), Ruth Hoekstra (GIZ), Ailsa Nicol (ICC), Thomas
Westergaard-Kabelmann (QBIS), Attilio di Battista,
Calin Brown, Yuri Saito and Candice White (WEF).

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 vi
 ABBREVIATIONS & ACRONYMS
CFS Container freight station
CIPE Center for International Private Enterprise
FCL Full container load
GATF Global Alliance for Trade Facilitation
GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH
HS Harmonized System
ICC International Chamber of Commerce
ICD Inland container depot
LCL Less than a container load
LPI Logistics Performance Index
M&E Monitoring and Evaluation
MNE Multinational enterprise
OECD Organisation for Economic Cooperation and Development
SME Small and medium-sized enterprise
T/C-D Time/Cost-Distance
TFA World Trade Organization’s Trade Facilitation Agreement
TRS Time Release Study
TTLC Total Transport and Logistics Cost
UNCTAD United Nations Conference on Trade and Development
UNESCAP United Nations Economic and Social Commission for Asia and the Pacific
WACC Weighted Average Cost of Capital
WEF World Economic Forum
WTO World Trade Organization

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 vii
 EXECUTIVE SUMMARY
Developing and emerging economies are often prone to It can also be used to assess ex post the impact of
long lead times,1 delays and unpredictability in the supply specific trade facilitation interventions on the total costs
chain resulting, in large part, from unreliable of transport and logistics.
infrastructure and inefficient procedures. These increase
trade costs that, in turn, limit the participation of their There are various methodologies aiming to measure
firms in regional and global value chains and hamper supply chain performance. These tend to vary in scope,
economic growth (WTO 2014, WTO 2015, UNCT AD periodicity and granularity. However, none are designed
2016). to account for costs accrued from delays during the
import or export process. This is the main contribution
In addition to the existing direct costs, long lead times, of the TTLC methodology in this field.
delays and unpredictability negatively affect a country’s
competitiveness by generating significant indirect costs. One of the key assumptions of the TTLC is that
Such indirect costs can take the form of demurrage and indirect costs correlate with time, whereby the longer
detention charges, higher and lengthier storage a consignment is delayed by a given supply chain
requirements, theft and spoilage, and penalties for late process, the higher will be the attributed indirect cost.
deliveries. They also drive up costs by forcing firms A container idling multiple days at terminal, whether
to hold additional inventory to prevent production it is waiting for clearance by customs or because it is
stoppages or supply interruptions to customers. In misplaced by a terminal operator, may incur additional
developing countries, such safety stocks can equal costs in the form of demurrage, storage and losses from
up to one year of expected sales (WTO 2014). spoilage, for example. The TTLC approach proportionally
allocates these costs along the supply chain according
Indirect costs may be the domain where most gains can to the time required to complete a specific step relative
be achieved with trade facilitation reform and policy to the total time to complete the import or export
as they—unlike direct costs—could have a multiplying process, and the type of indirect costs applicable at this
effect by generating additional delays and further costs step. The TTLC is calculated using survey data collected
downstream in the supply chain. through interviews with key supply chain stakeholders.

Despite their negative impacts on trade, indirect costs This note explains the methodology underpinning the
are typically not fully accounted for in the design of TTLC, detailing its key components and setting it apart
trade facilitation policy, as reliable estimates are not from other methodologies that similarly aim to measure
generally available. This omission could nonetheless the costs and/or time of trade. Section 1 provides an
lead policymakers and supply chain stakeholders to overview of existing methodologies developed to
misidentify the interventions that could be the most capture the time and costs associated with specific
impactful and cost-effective to facilitate trade and/ import and export processes. Section 2 explains the
or to not fully appreciate the impact of specific trade TTLC conceptual framework, including the operational
facilitation reforms. definition of its key components. Section 3 explains
the survey methodology, sampling strategy, survey
The Total Transport and Logistics Costs (TTLC) instruments and potential biases and limitations. Section
methodology aspires to fill this data gap by combining 4 explains the computation of results, and Section 5
measurement of direct costs, such as transportation details the TTLC implementation process at the country
and customs fees, with estimates of indirect costs level. The Appendix lists the indicators used in the
accruing from long lead times, delays and computation of the results.
unpredictability to more accurately assess the total cost
of transport and logistics in cross-border trade. By
estimating the time and costs incurred in completing
each step of the import and export supply chains, the
TTLC can be used as a baseline tool to identify
bottlenecks and estimate ex ante the potential returns
of trade facilitation reform.

1. In this methodological note, lead times include both process and

transit times for goods throughout the supply chain.

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 1
1. DIRECT &
INDIRECT COSTS:
Definitions, importance & gaps

The TTLC measures the total cost of transport and To the extent delays can be anticipated, exporters can
logistics in cross-border trade, broken down into two either arrange for goods to be shipped in advance or
components: direct and indirect costs. Direct costs are the pay a premium for faster delivery solutions (Hummels
costs incurred by an importer or exporter to complete an and Schaur 2013). Alternatively, they may incur penalties
import or export process through a given point of entry for late arrival or risk damaging their relationship with
or exit. These can include payments for terminal handling, customers. Both options significantly increase operational
trucking charges related to the movement of cargo, and costs and/or impair competitiveness.
administrative and transaction fees related to documentary
compliance. Indirect costs are defined as costs related to Costs induced by time have additional implications for
time, which include the average lead time, delays and the international trade. Various studies have demonstrated
time variance of completing an import or export process. that higher logistical costs and longer transport times have
These may include penalties for late delivery, demurrage negative effects on trade volumes and on firms’ ability to
and detention charges, additional storage and inventory export (Hummels and Schaur 2013; Djankov et al. 2010;
costs, among others. Portugal and Wilson 2009). As expected, these effects
are higher for firms operating in time-sensitive sectors
THE IMPORTANCE OF TIME AND such as electronics, fashion and food, where short and
predictable turnaround times and low costs constitute
SUPPLY CHAIN RELIABILITY FOR TRADE a key source of comparative advantage (Harrigan and
To consider the relationship between time and indirect Venables 2004, Djankov et al. 2010; Freund and Rocha
costs is critical to comprehensively assess the total cost 2010). With an increasing range of goods becoming time-
of trade and capture the complexity of the supply chain. sensitive, countries will need to shorten lead times and
There is ample evidence suggesting that long lead times, increase predictability to become or remain competitive.
delays and time variability are costly for firms (Hummels Understanding where such bottlenecks are located is key
and Schaur 2013; Carballo et al. 2014, Volpe Martinicus in designing efficient and cost-effective policies to address
2016). Hummels and Schaur (2013) estimate that each them.
additional day in transit is equivalent to a value-added
tariff of 0.6% to 2.3%. Analysing a sample of 16 Latin
American countries, Wilmsmeier et al. (2006) find that
longer customs procedures at seaports are associated
with higher shipping costs. With regards to time variability,
Frankel (1999) estimates that a standard deviation of 20%
of transport time can lead to a 45% increase in transport
costs for maritime freight.

In most countries, the costs caused by import delays

exceed those from tariffs, while costs due to export delays
exceed those of tariffs faced by exporters in all country
groupings except for OECD and East Asia and Pacific
countries (Hummels 2017). Arvis et al. (2007) suggest
that the overall reliability of the supply chain and hedging
against uncertainty of delivery time make up a significant
part of logistics costs in developing countries.

When delivery schedules are unpredictable, importers

need to keep higher inventory to prevent interruptions
in production and/or in the supply to the customers
(Alessandria et al. 2010; Guasch and Kogan 2003). In
developing countries, such stock buffers can correspond
to one year of expected sales, adding significantly to
production costs and impairing competitiveness (WTO
2014). The financial cost of inventory can be especially
high for importers in developing countries given the higher
cost of capital (Guasch and Kogan 2003).

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 2
1. DIRECT & INDIRECT COSTS

A REVIEW OF EXISTING METHODOLOGIES provides firm-level data, which allows for the analysis of
the variance of customs clearance times across firms. Data
A few methodologies and tools are available to estimate on the costs of importing and exporting are not collected.
costs and/or assess the performance of supply chain While the Enterprise Survey covers 139 countries, data are
logistics. The most commonly referred methodologies are not collected annually in each country.4
briefly explained below, and subsequently compared to the
TTLC to highlight the gap it attempts to fill within this field. The World Customs Organization’s Time Release Study
(TRS) measures the total time cumulated between the
In general, while the methodologies reviewed below arrival of goods at a port/airport/land border and their
capture the time and direct cost necessary to complete physical release. Under the general guidance of the
documentation and border clearance procedures, none WCO, it is being increasingly conducted by customs
considers the additional costs associated with delays/ administrations. It disaggregates border procedures
supply chain reliability. By including a measure of indirect into processes such as preparation of documents and
costs, the TTLC provides a more holistic measure of the completion of formalities, and movement of cargo between
cost of trade borne by firms and the potential gains from countries. In turn, each process can be further divided
trade facilitation interventions. into shorter segments. For example, the average time to
complete customs procedures can be divided into average
The Trading across Borders indicators from the Doing
time for documentary control and for physical examination
Business survey published by the World Bank are probably
of goods. The data used to compute these indicators can
the most well-known sources of data on trade time and
come from primary or secondary sources. For instance, the
cost. This methodology captures the average time and
average physical release times may be collected through
cost (excluding tariffs) of three procedures: documentary
a survey or retrieved from information systems. The TRS
compliance, border clearance and domestic transport. Data
focuses only on measuring time and does not estimate the
are collected via surveys administered to 1,616 respondents
direct and indirect costs of importing and exporting.5 The
in 190 economies (for the 2019 report). To ensure cross-
results are usually not publicly disclosed unless it is shared
country comparability, which is necessary as countries are
by the proprietor of the study.
ultimately ranked according to the estimated ease of doing
business, the methodology makes a set of assumptions Of the measures reviewed in this section, the Time/Cost-
about the traded goods, the port of entry and exit, the Distance (T/C-D) methodology developed by UNESCAP
destination of the shipment, and the value and unit of is potentially the closest methodologically to the TTLC.
the shipment, among others. For example, it assumes The T/C-D collects cost and time data associated with
that each economy imports a standardised shipment of transport processes through structured interviews with
15 metric tons of containerised auto parts, though export freight forwarders and transport operators. The T/C-
shipments do not necessarily need to be containerised.2 D’s purpose is to identify bottlenecks along a particular
The Trading across Borders indicators are displayed as a transport corridor by looking at the cost and time at every
single average value per procedure per country, however milestone along that transport corridor. Each milestone is
they do not capture intra-country variance in time and agreed upon at the onset of the T/C-D to define the scope
cost. of the assessment. Unlike the TTLC, however, the scope of
the T/D-C is limited to processes related to the physical
The World Bank’s Logistic Performance Index (LPI)
movement of cargo and does not cover the time and cost
offers two perspectives on supply chain performance:
required to complete import or export documentation
international and domestic. The international LPI
procedures by firms.
provides a qualitative assessment of the performance
of a country’s supply chain by its trading partners on six The methodologies highlighted in this section vary in
core components: the efficiency of customs and border scope, periodicity and granularity. To the extent that
clearance, the quality of trade and transport infrastructure, comparisons are meaningful, the data collected through
the ease of arranging competitively priced shipments, the these sources may be used to complement or triangulate
competence and quality of logistics services, the ability those collected through the TTLC.
to track and trace consignments, and the frequency with
which shipments reach consignees within scheduled or
expected delivery times. The domestic LPI provides a more
detailed country-level assessment from the perspective of
domestic logistics professionals. Specifically, it captures
qualitative and quantitative information on infrastructure,
services, border procedures and time, and supply chain
reliability. Though the domestic LPI collects data on the
time required to complete border clearance procedures
and to transport goods inland, it does not collect data on
the cost for these processes. In the latest edition of the LPI,
the survey was administered to 869 logistics professionals
in 108 countries.3

The World Bank’s Enterprise Survey collects data 2. For a full description of the methodology, refer to
[Link]
exclusively on border clearance procedures. Specifically, it
3. For a full description of the methodology, refer to
asks respondents the average number of days it takes to [Link]
clear imports and exports through customs at any point 4. For a full description of the methodology, refer to
of entry (e.g. port, airport, etc.). Only manufacturing firms [Link]
are administered the question on customs clearance times 5. For a full description of the methodology, refer to
[Link]
for imports. An interesting feature of this survey is that it [Link].

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 3
1. DIRECT & INDIRECT COSTS

TABLE 1: COMPARISON OF METHODOLOGIES

AND TOOLS TO ESTIMATE TRADE TIME AND COST

INDIRECT DATA AGGREGATION

METHODOLOGY DIRECT COSTS TRANSIT TIME DATA TYPE SUPPLY CHAIN SCOPE
COSTS DISTRIBUTION** LEVEL

Doing Business: Documentation,

Trading across Yes Yes No No National Survey border clearance,
Borders inland transit

Logistics Documentation,
Performance No Yes No No National Survey border clearance,
Index (LPI) inland transit

Enterprise
No Yes No Yes Firm Survey Border clearance
Surveys

Time Release
No Yes No No National Mixed* Variable
Study

Time/Cost- Border clearance,

Yes Yes No No Firm Survey
Distance inland transit

Documentation,
TTLC Yes Yes Yes Yes Firm Mixed* border clearance,
inland transit

* Combination of survey and secondary data

**. Data allow a distributional analysis of time and costs across firms for a
given process

PROPOSING A NEW APPROACH The main contribution of the TTLC methodology is

precisely to fill these gaps by quantifying time variability
Despite the evidence showing that delays and time and indirect costs. At the same time, the TTLC provides
variability in the supply chain can lead to significant a step-by-step analysis of the full supply chain in
indirect costs for firms, the methodologies reviewed in terms of cost and time that, taken together, provide a
the previous section are not designed to capture these comprehensive and novel approach to measuring transport
measures. As a result, they are unable to quantify the and logistical performance. It should also be noted that it is
burden imposed by indirect costs and, consequently, fully not the primary intent of the TTLC to arrive at a ranking of
estimate the total transport and logistics costs of trade. country performance, as it is geared towards assessing the
country’s own evolution in reducing transport and logistic
Another feature not provided by these methodologies is
costs.
the ability to assess cost and time variability across firms
and over time. In most cases, data are collected as single-
value averages of a supply chain process. Though the firm-
level data of the Enterprise Survey provide a distributional
perspective on average clearance times across firms
through sample variation, they do not capture lead time
fluctuations stemming from failures in the supply chain.

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 4
2. TTLC FRAMEWORK

ANALYTICAL FRAMEWORK
The TTLC captures both the direct and indirect costs of
importing and exporting freight.6 The operational definitions
Where Xij is the value of indirect cost j allocated to
used in the TTLC are as follows:
supply chain process i, Cj is the value of indirect cost j, Ti
Direct costs are defined as the costs incurred by an is the time required to complete supply chain process i.
importer or exporter to complete an import or export A linear relationship between indirect costs and time is
process through a given point of entry or exit.7 Direct assumed, meaning that the longer a process takes, the
costs include expenses associated with documentation amount of indirect costs allocated to this process will be
compliance, trucking and terminal handling fees and other proportionately higher.
charges required to clear goods, excluding import or export
Figures 1 and 2 provide a diagrammatic overview of the
duties and tariffs. As opposed to indirect costs, directs costs
TTLC framework for imports and exports, respectively. The
are time-invariant (i.e. they are not affected by transit time
figures display the processes analysed in the supply chain
and/or delays).
and the milestones delimiting each process. Each process
Indirect costs are defined as costs related to time, which can be further disaggregated into steps that can vary across
include long lead times, delays and time variability. These countries. Figures 1 and 2 also map how the time required to
include idle trucking costs, penalties for late deliveries, complete each process contributes to specific categories of
demurrage and detention charges, extra storage and indirect costs.
inventory costs, and lost orders. The inclusion of indirect
The scope of the import supply chain spans from the start
costs in the analysis is a unique and central component of
of the preparation of the import documentation to the
the TTLC methodology.
return of the empty container to an inland depot, cf. Figure 1.
Lead time is defined as the time between the initiation
The scope of the export supply chain begins with the
and completion of a supply chain process. It includes
preparation of the export documentation and ends when
both the transit and waiting time of cargo during a given
the container has been loaded onto the vessel, cf. Figure 2.
process. Delays are the extra time, in addition to regular
lead times, required to complete a process. Delays are by The TTLC breaks down the scope of the import and
nature unpredictable and can be the result of poor planning, export supply chains into discrete processes, defined by
system inefficiencies, traffic congestion or other external a set of activities occurring between fixed milestones and
factors. Time variability relates to the frequency and described in further detail in the following section. While
magnitude of delays susceptible of shaping the behaviour the TTLC methodology is tailored to the specific logistics
or supply chain stakeholders. Chronic delays may lead setup and practices of the country to which it is applied,8
importers to stock on extra inventory to prevent production the processes included are consistent, allowing for cross-
stoppages and shortages or to expedite cargo well in country comparability for a given process9 and sector.
advance to ensure it is delivered on time.

Direct costs, time and time variability are observed for the
entire scope of the import or export supply chain. Indirect
costs are estimated as a function of time and its variability;
they are allocated across the supply chain according to the 6. The TTLC was originally developed to measure the cost of moving
number of hours required to complete each process and containerised freight by sea, which is the process described in this
methodological note. However, the methodology can be extended and
weighted by the total number of hours required to complete modified to measure the total cost of transporting cargo by air and land
all the processes relevant to the concerned indirect. For freight. In such cases, the scope and concepts would need to be customised
to properly reflect the processes, milestones and indirect costs associated
example, during the import process, demurrage fees can with each transport mode. The survey instrument would also need to be
be charged only from the time spent between the moment adapted to the customised conceptual framework.
a container has been discharged from the vessel to the 7. Point of entry/exit is defined as the gateway point of importation/exportation
moment the consignee has picked up the container at of goods into/out of the domestic market.
the port. Demurrage costs would therefore be allocated 8. Example: At the port of Nhava Sheva (India), export containers are registered
by customs at a parking plaza located outside the port premises. In this
according to the hours to complete the border clearance, port-specific case, an additional set of questions were added to the survey to
dwell time, and truck turnaround process, weighted by gather data on the time required to complete the container registration at the
parking plaza, the relative frequency of physical inspections at registration,
the total number of hours required to complete these the time required for the container to reach the physical inspection site, the
three processes. This can be represented by the following time required to complete the physical inspection of the container, and the
equation: time required to reach the port from the inspection site.
9. Except for inland transportation

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 5
2. TTLC FRAMEWORK

FIGURE 1: SCOPE OF THE IMPORT SUPPLY CHAIN

MILESTONES
CONTAINER
DOCUMENT SHIP PORT SHIP BERTING DISCHARGE CLEARANCE FINAL FINAL
GATE OUT RETURNED TO
SUBMISSION ENTRY COMPLETED COMPLETED COMPLETED DESTINATION DELIVERY
DEPOT

DOCUMENTATION BORDER TRUCK TURN INLAND STRIPPING RETURN EMPTY

SHIP INWARD DISCHARGE DWELL TIME
PROCESS CLEARANCE AROUND TRANSPORT CONTAINER CONTAINER

PROCESSES

INDIRECT COSTS

DAMAGE & SPOILAGE

DEMURRAGE & DETENTION

IDLE TRUCKING

INVENTORY

LOST ORDERS

LOST PRODUCTION
PENALTIES FOR
LATE DELIVERY

STORAGE COSTS

THEFT

WASTED WORK HOURS

FIGURE 2: SCOPE OF THE EXPORT SUPPLY CHAIN

MILESTONES
TRANSIT TO EMPTY CONTAINER CONTAINER
DOCUMENT CONTAINER CLEARNACE LOADING
CONTAINER CONTINER ARRIVES AT DELIVERED TO
SUBMISSION SEALED COMPLETED COMPLETED
DEPOT RETRIEVED BORDER TERMINAL

RETRIEVING
DOCUMENTATION STUFFING INLAND BORDER TRUCK
EMPTY DWELL TIME LOADING
PROCESS CONTAINERS TRANSPORT CLEARANCE TURNAROUND
CONTAINER

PROCESSES

INDIRECT COSTS

DAMAGE & SPOILAGE

DEMURRAGE & DETENTION

IDLE TRUCKING

LOST ORDERS
PENALTIES FOR
LATE DELIVERY

SHUTOUT CHARGES

STORAGE COSTS

THEFT

WASTED WORK HOURS

Note: Indirect costs are accounted under each process denoted by a marker.

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 6
2. TTLC FRAMEWORK

OPERATIONALISATION OF THE The efficiency and practices of inspection processes are

additional contributing factors for delays. Higher inspection
FRAMEWORK rates necessarily increase the average time required to clear
cargo at the border. If cargo is selected for inspection, the
Measurement of direct costs and time number of agencies requiring inspection can also lengthen
the process if it is performed in an uncoordinated manner,
1. The documentation process includes the time and fees
as the number of visits from different agents, which can
incurred in obtaining, preparing, submitting and processing
arrive at various times or days, will be higher.
all paper and/or electronic documents required for the
clearance of traded cargo at the country of origin for 5. The truck turnaround process12 for imports comprises
exports and the destination country for imports. the truck entering the port terminal (including queuing
at the gate), picking up the cargo and exiting the facility
The required documents are usually those detailing
through the gate into the domestic market. For exports, it
the ownership and description of the cargo (e.g. cargo
begins when the truck carrying the cargo starts queuing at
declaration, bill of lading, packaging lists, waybills, etc.),
the gate to enter the port and ends when the container has
compliance with export/import requirements (e.g. permits,
been delivered at the terminal and the truck has exited the
licenses, certificates, etc.) and other accompanying
port.
documents (e.g. commercial invoices, customs declaration,
etc.).10 The degree of harmonisation and digitisation of The time spent by trucks entering, circulating and exiting
documentary requirements has a significant impact on the the port can be influenced by both port performance, the
speed at which documents are exchanged and processed. size of the port and external factors (e.g. the time of day
and number of vessel arrivals). Trucks that arrive at the
2. The ship inward process refers to the period between
port to retrieve an import container can also bear export
the arrival of the container-bearing vessel at the port
cargo to be loaded onto a vessel at the same port, in
breakwater and the completion of berthing. The time
which case the truck will take additional time to deliver the
taken to complete this process mainly depends on vessel
export cargo before picking up the import cargo.13
turnaround times at the port, which in turn are determined
by the productivity level of container terminals. Other 6. The inland transport process for imports starts when
factors such as the availability of pilots, weather conditions the container gates-out from the terminal and until is
and seasonal or weekly variations in vessel traffic may delivered to the stripping site. If the stripping site is a CFS/
also influence time. Though turnaround times at the port ICD, the process includes the time the container needs to
negatively correlate with port efficiency, longer times do not wait to gate-in and circulate within the premises.
necessarily mean that the port is less efficient. For instance,
ship owners may choose to keep their ships longer in a port For exports, the process begins when the container is
to purchase goods or services (UNCTAD 2019). sealed and ends when it arrives at the border or customs-
controlled area. This excludes the time waiting to be
3. The discharge/loading process refers to the loading and processed by customs, included in the border clearance
unloading of the container from the vessel once shipping process.
documentation is cleared and berthing is completed. The
time taken to load and unload cargo is mainly determined The travel time and costs for this process depend on
by the size of the ship and the capacity and productivity the inland transport routes defined in the design of the
of the container terminal, including the number of cranes TTLC, which, in turn, depend on the economic sectors
available and the speed and efficiency at which they move. of interest. Time and costs will then be a function of the
travel distance, level of traffic congestion, type of cargo,
4. The border clearance process refers to the cost and infrastructure quality, weather patterns, and number and
time to complete all procedures necessary to comply with efficiency of checkpoints and weighbridges.
a country’s customs regulations and meet the requirements
of the relevant public agencies for cargo to enter/exit
the market. The border clearance process may include
additional activities such as physical inspections and
scanning. For both import and export processes, containers
arriving at the border can be relegated to different
processing channels by authorities, for instance, they may
be exempt or selected for scanning or physical inspection. If
selected for inspection, they may remain at the terminal or
sent to a container freight station (CFS) or inland container
depot (ICD).11 If there are no customs agents onsite, agents
typically need to travel to these sites to control the cargo, 10. Import licenses and other documents with longer process duration are
which can lengthen the time taken to complete the process typically excluded from the analysis, unless directly affected by the analysed
intervention and purposefully included in the process. At the design
and, consequently, increase costs. phase of the TTLC study, a list of documents required to import/export
for the studied country is compiled to provide a point of reference for the
Physical inspections may require a customs agent to open respondents.
the container and inspect its content, either by taking a 11. CFSs and ICDs are customs-controlled areas which are outside the port
premise.
sample of the goods or partially stripping the container. The
12. The turnaround process could be applicable to modes of inland
larger the share of the containers stripped, the longer the transportation other than truck, e.g. train, barge, etc. This would need to be
inspection process. Inspections may also include scanning; considered at the design phase of the TTLC to allow for the tailoring of the
provided that the port has scanners on premise, the survey instrument.
length of scanning procedures depends on the number of 13. By not accounting for land transport combining both the delivery and
the reception of containers for a single trip, the framework potentially
operational scanners available. underestimates the efficiency gains from this procedure.

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 7
2. TTLC FRAMEWORK

7. The stripping container process14 corresponds to the Estimation of indirect costs

unloading of a stuffed container. The process begins when
the container arrives at the stripping site and ends when 11. Demurrage costs are the compensation importers
the container is fully stripped. The time taken to strip pay to the shipping lines when their containers are held
a container depends on the type, size and quantity of inside the terminal, port or depot beyond the agreed
consignments. It also depends on the number of parcels in amount of non-chargeable time. Since demurrage fees
the shipment and workers assigned, or whether specialised are a competitive factor, they vary greatly between
machinery is required to carry out this task. shipping lines, not because shipping lines’ daily rates differ
significantly, but because important clients are often able
The stripping site can be at the premises of the importer to negotiate longer free time.
(factory or distribution centre) or a CFS/ICD, which usually
have the facilities and equipment to carry out this process. Exporters can also incur demurrage costs if a container
Import cargo can also be deconsolidated at a CFS/ misses its scheduled vessel and is rolled to a new vessel.
ICD to optimise the redistribution of the consignments. Demurrage charges would apply after the agreed amount
Depending on the travel time between the destination of of non-chargeable time has expired until the container has
the cargo and the port and opportunities for delivering been loaded on board the next vessel. In the case of bulk
the empty container at an inland depot, the importer can cargo, demurrage fees are incurred when the cargo fails to
choose to strip the container at the terminal or at a CFS/ be loaded and discharged beyond the pre- agreed time.
ICD located close to the port to reduce costs.
Demurrage charges depend on the type of container
8. The process of returning an empty container15 (e.g. dry or refrigerated), and the number of days it is in
corresponds to the transportation of the empty container custody beyond the agreed free time. Unsurprisingly, the
from the stripping location to the empty container depot, costs of holding a dry container are lower, because both
beginning when the container is fully stripped and ending the number of free days allowed for dry containers is
when the empty container is delivered to the shipping line higher and charges are considerably lower.
depot.
Demurrage costs are estimated from a triangulation of
The time recorded for this process depends on the travel sources. First, the reported likelihood that importers and
distance between the stripping site and the container freight forwarders will incur demurrage costs on their
depot. Delays can occur depending on the level of road shipment, the average number of demurrage days charged,
congestion, the quality of road infrastructure and weather and the daily demurrage fee at the corresponding price
conditions. level. Second, if available, data from shipping lines on their
annual demurrage charges and income. Third, the reported
9. The stuffing container process16 is the loading of the average delays, variation in delays and the number of free/
empty container at the stuffing site and begins when the chargeable days published by the shipping lines.
empty container arrives at the stuffing site or warehouse
docking station and is ready to be loaded and ends when 12. Detention costs are the compensation paid to the
it is fully stuffed. shipping lines when a container is held outside the
terminal, port or depot beyond the agreed amount of non-
The time taken to stuff a container depends on the type chargeable time. Exporters can also incur detention costs
(fragile/non-fragile), size and quantity of consignments. It if an empty container has been picked up for stuffing, and
also depends on the number of workers assigned to stuff the stuffed container is returned to the port or terminal
the container and whether the process is automated. after the agreed amount of non-chargeable time.

Similar to stripping, the stuffing site can be at the premises Similar to demurrage, detention fees can vary according
of the exporter or at a CFS/ICD. If a CFS/ICD is used, it is to the negotiation capacity of clients. In cases where
usually because the shipment is less than a container load respondents report detention costs separately from
(LCL) and the cargo needs to be consolidated. demurrage, the methodology to estimate demurrage costs
is also applied to detention costs.
10. The empty container retrieving process17 refers to
retrieving and transporting of the container from the 13. Storage costs are those incurred from storing
empty container depot to the stuffing site. The process containers at the port, ICD, CFS or bonded warehouses.
begins when the truck takes off to the container depot and Storage charges depend of the type of container stored
ends when the empty container is delivered to the stuffing (dry or refrigerated) and the number of days a container is
site. in storage after the agreed non-chargeable time.

Delays can occur during this process if empty containers Importers can store cargo at CFS/ICD facilities if there
are unavailable at the container depot, in which case is insufficient storage capacity in their premises or
truck drivers may need to wait at the depot for the empty import duties are not paid. Exporters may need to use
container to arrive. The time recorded for this process storage services if they miss the shipping cut-off and the
also depends on the travel distance between the truck’s scheduled vessel, for example due to unreliability of carrier
point of departure, the container depot and the stuffing services or blank sailings.
site. This process can also take longer depending on traffic
congestion, the quality of road infrastructure and weather
conditions.
14. Concerns import process only
15. Concerns import process only
16. Concerns export process only
17. Concerns export process only

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 8
2. TTLC FRAMEWORK

Storage costs are estimated from a triangulation of 18. Damage and spoilage costs correspond to losses
sources. First, the reported likelihood that containers will from cargo damage and/or spoilage resulting from
incur storage costs, the average number of storage days handling, above-average transit times and below-average
charged, and the daily storage fee at the corresponding transport conditions. For example, damage can occur from
price level. Second, if available, data from terminals on rough handling of the cargo and poor road conditions
their annual income from storage and average number of during transit. Spoilage typically pertains to perishable
storage days per container. Third, the reported time used goods, such as food or agricultural produce, which are
for customs clearance and dwell time in the port, terminal disproportionately affected by delays.
or CFS and the number of free/chargeable days published
by the terminals/ports. High inspection rates are also likely to increase these
costs since they can involve multiple operations which
14. Inventory costs are increased when supply chain increase the risk of rough handling and delays. During
reliability is low, as importers need to keep higher inventory this procedure, a container may need to be moved from
to prevent interruptions in production and/or in the supply the stack to the customs inspection area, after which
to customers. Some respondents report this cost directly, the cargo may need to be manually moved in and out
while others say it exists but are unable or unwilling to of the container. In addition, physical inspections can
quantify it. Firms that do not keep inventory can incur also increase the transit time of the cargo, increasing the
costs that materialise in other forms such as interrupted likelihood of spoilage.
production, delays in the delivery of goods and lost orders.
These losses are estimated using the reported average
Information on inventory costs is obtained from two frequency of damage or spoilage, the average share of
sources. First, companies’ self-assessments of the extra cargo lost per container and the average value of the
inventory they need to prevent shortages; typically, only cargo.
large companies can provide such information. Second, for
those not able or willing to self-assess, costs are estimated 19. Theft of cargo costs are the losses of cargo resulting
based on the reported time of importing a container from crime and theft. Theft of cargo can be problematic
and several other data and assumptions. As transit along transport corridors or areas vulnerable to hijacking.
time delays in previous studies have been documented Long storage times in logistics facilities can also increase
to approximately follow a log-normal distribution, this the likelihood of cargo being stolen through break-ins.
distribution is used to assess the number of extra inventory
Losses from theft are estimated by using the reported
days.18 Using the Weighted Average Costs of Capital
average frequency of theft, the average share of cargo lost
(WACC) and the reported value per container, it is possible
per container and the average value of the cargo.
to estimate the monetary cost of the extra inventory
days companies hold to prevent out of stock. The cost is 20. Idle trucking costs are the extra costs resulting from
assessed based on the average and standard deviation trucks waiting at border posts, check points, weighbridges,
values of their transit time, an assumption of log-normal container depots, rest periods, road congestion and other
distributed delays. bottlenecks. These costs exclude truck detention charges
and are derived from the average amount of time a truck
15. Penalties for late delivery are the costs incurred,
spends waiting at main stopping points identified in the
usually by suppliers, for delivering a shipment late.
TTLC survey, and the standard trucking charges.
Penalties for late delivery can materialise due to violation
of contractual terms, or as lost income due to the 21. Shut-out charges are incurred when an export
container missing a deadline and the content being container is not loaded on its intended scheduled vessel. A
rejected by the buyer (e.g. perishables being rejected if the container could miss its vessel if, for example, it is rejected
number of shelf-life days is exceeded). by the carrier because of weight issues. These costs are
estimated using the reported average frequency of shut-
These penalties are estimated using the reported amount
out charges due to delays cumulated during the export
spent on penalties for late delivery to customers in the
process, and the amount of the charges per container.
past year and the reported share of this amount that can
be directly attributed to containers being delivered late. 22. The cost of wasted work hours incurred is the
additional labour cost that can be directly tied to
16. Lost orders costs are defined as the value of lost orders
inefficient or redundant procedures. These costs can be
from customers that can be directly attributed to delays
differentiated between the public and private sectors. For
and long lead times. They are incurred when delays and
example, the additional cost of an employee dedicated to
unpredictability in the supply chain negatively affect a
correcting the documentation. These additional costs are
company’s capacity to retain customers. These costs are
derived from targeted questions from the TTLC survey.
estimated using the reported value of orders lost in the
past year and the reported share of this value directly
resulting from containers being delivered late.

17. Lost production costs can be incurred when

manufacturers experience production stoppages due
to delays. These costs are estimated using the reported
value of sales lost due to production cuts in the past year
and the reported share of production stoppages or cuts
resulting from containers being delivered late.

18. Log-normal distribution is found in Arvis et al. (2007).

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 9
3. TTLC SURVEY
METHODOLOGY

Data collection through in-country surveys is a key process (2), ports (8), container terminals (9), final destinations
in the deployment of the TTLC. While data on direct costs (10) and inland transport modes (11) to be covered.
are often publicly available, information on the length of
and variation in lead times, which is necessary to estimate However, when the TTLC is used as an impact assessment
indirect costs, is not. tool, it is tailored to the design of the intervention, i.e.
target sectors and associated ports (8), terminals (9),
As track-and-trace technology becomes accessible and destinations (10) and inland transport modes (11) will be
widely utilised, it should be possible to obtain real-time those potentially affected by the project whose impact is
data on the location of containerised freight and more to be assessed.
accurately assess transit times throughout the supply
chain. At the current stage of technology deployment, To cover the full scope of the supply chains, as defined in
however, surveys remain an essential tool to collect this Section 2, the TTLC survey is administered to importers,
kind of data. exporters, clearing and forwarding agents, trucking
companies, shipping lines and terminal operators.
This section highlights the key features of the TTLC survey
methodology, including sample selection and size and Multinational, large and small companies each face
survey administration, and addresses some of the survey’s particular challenges in the supply chain due to differences
potential limitations. in access to information, technology and skills and
bargaining power, among others. This is particularly true
SAMPLE SELECTION of importers, exporters and freight forwarders. To capture
these disparities, at least one-third of importing/exporting
In its most comprehensive form, the TTLC survey selects companies included in the sample are large, one-third
respondents according to the following criteria: are small and medium, and the remaining one-third is
determined by the structure of the economy in line with
1. Trade flow19
the share of GDP by company size.26
2. Sector
3. International transport mode20 The ports/trade corridor(s) considered in the TTLC will
depend on the scope established in the design phase.
4. Shipment size 21
When multiple ports or routes are covered, aggregated
5. Firm type22 results will be calculated following the method highlighted
6. Importer/exporter type (if firm type is importer or in Section 4.
exporter)23
7. Firm size24
8. Port
9. Container terminal
10. Destination
11. Inland transport mode25

For each criterion, the number of attributes is restricted

according to the desired scope of the study. Respondents
are selected according to whether they fulfil at least one of 19. Import, export
the attributes for each criterion within the defined scope. 20. Sea, air, land. In the context of the Alliance, the TTLC has been more
frequently used for maritime freight.

The sample selection process depends on the type of TTLC 21. Full container load (FCL), less than a container load (LCL), bulk, etc.

implemented. The TTLC can be used either as a diagnostic 22. Importer, exporter, clearing and forwarding agent, terminal operator,
shipping line, trucking company
tool (i.e. to identify trade bottlenecks and barriers) or as
23. Re-seller of final goods on domestic market, importer of production inputs,
an impact assessment tool (i.e. to quantify the impact of re-exporter of imported goods or exporter of final goods or inputs to
specific trade facilitation projects). production
24. Small and medium enterprise (SME), large company, multinational enterprise
If the TTLC is used as a diagnostic tool, the sample frame (MNE)
is primarily determined by the sectoral makeup of the 25. Road, rail, water. In the context of the Alliance, the TTLC has been typically
applied to road transport.
economy. Once the relevant trade flows (1) and sectors (2)
26. This is generally the case if the TTLC is deployed as a diagnostic tool. In
are identified, an assessment of the container throughput the case of impact assessment targeted at a particular sector, the share
by port and terminal and the location of production and of companies of different sizes may be different, as the selection of
respondents will be primarily dependent on the profile of companies that
consumption determine the international transport modes constitute the analysed sector.

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 10
3. TTLC SURVEY METHODOLOGY

Finally, the TTLC can be tailored to accommodate SURVEY INSTRUMENT

landlocked countries. When goods are transported over
land, landlocked countries need to rely on transport and The collection of data is based on a digital questionnaire,
logistics infrastructure in neighbouring countries. In such whose structure is informed by the TTLC analytical
cases, the scope of the supply chain can be extended to framework and the specific processes followed by the
include the time and direct costs incurred in the country country/project to which the methodology is applied.30
through which the cargo transits. The indirect costs
Detailed data on direct costs and lead time are collected,
associated with the additional processes occurring in the
in addition to information on their variation within each
transit country would be estimated as a function of the
process and sub-process of the supply chain. Since not
time necessary to enter and exit said country.
all processes are applicable to all types of respondent,
Naturally, the wider the coverage of the TTLC – e.g. the the questionnaire is also tailored to the respondents’ role
number of ports, terminals and sectors – the larger will be in the supply chain and the trade flow for their business.
the required sample to obtain robust results. Stakeholders are therefore administered different
subsets of the full questionnaire, though some processes
SURVEY ADMINISTRATION may overlap between stakeholders. For example, both
importers and clearing and forwarding agents may be
Once the sample frame has been established, respondents surveyed on the container stripping process.
are identified and selected non-randomly through the
network of the Alliance27 and its business partners. For
importing or exporting firms, the interviews are targeted FIGURE 4A: MINIMUM SAMPLE SIZE GIVEN A 90%
at logistics managers with the best knowledge of logistical CONFIDENCE INTERVAL AND 10% MARGIN OF ERROR
operations to ensure that a maximum of modules is
covered with the most accurate time and cost estimates.28 140

120
SAMPLE SIZE 100
Sample size

For most, if not all TTLC deployments, a common challenge 80

would be to determine the true size of the studied
60
population; the reason being that this information is
typically not known or collected. In the usual case where the 40
size of the population is unknown or infinite, the minimum 20
sample size no can be estimated using the following 0
equation (Cochrane, 1963): 0 500 1000 1500 2000 2500 3000 3500

Population size

Where e is the desired margin of error, Z is the critical FIGURE 4B: MINIMUM SAMPLE SIZE GIVEN A 90%
value for a given confidence level, p is the proportion of CONFIDENCE INTERVAL AND 7.5% MARGIN OF ERROR
attributes in the population29, and q is (1-p). When the
population is restricted to a smaller size, the minimum 140
sample size can be adjusted using the equation below: 120
100
Sample size

80
60

Although the sampling criteria in the TTLC would naturally 40

restrict the size of the population, a higher margin of 20
error and a lower confidence interval may be tolerated 0
to accommodate for smaller sample sizes. Figure 4a 0 500 1000 1500 2000 2500 3000 3500
illustrates the minimum sample size for a given population, Population size
using a 90% confidence interval and a 10% margin of error.
With these parameters, the minimum sample size given
a very large population would tend to 67 observations.
This number would tend to 115 observations if the margin
of error would instead be established at 7.5%, with the
confidence interval remaining at 90% (Figure 4b)

Nonetheless, a certain level of homogeneity can be 27. The Alliance network is typically activated for setting up the first round
assumed across firms given the stratification criteria of interviews aimed at testing and refining the survey instrument to the
established in Section 3. Since they operate under similar selected local import and export supply chains.
logistical environments, it is expected that firms belonging 28. Refer to Section 4 for a full description of the stages in the TTLC
implementation.
to the same selection pool would experience lower
29. A proportion p of 0.5 is often used in determining a more conservative
variance in transit times and cost. sample size.
30. As explained in Section 2, the scope of the supply chains tends to differ
across countries. These differences are identified during the inception phase
of the TTLC through desk research and semi-structured interviews with key
local stakeholders, and the questionnaire is revised and adapted to reflect
these country-specific features.

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3. TTLC SURVEY METHODOLOGY

As units of measurement must be uniform across surveys, Omissions

some responses must be converted by the surveyor and Lack of understanding and knowledge of a targeted
validated by the respondents. For questions relating to supply chain in a given country can result in omissions
costs, the surveyor is required to convert the value to of questions addressing important barriers, times and
the requested currency unit using the average exchange costs and consequently, lead to underestimation of the
rate of the previous month to partially address currency real lead times and costs. This type of bias is alleviated
volatility and time inconsistencies associated to the recall by desk research, collection of existing data and in-depth
period.31 For questions related to time, responses are interviews with relevant stakeholders during the first round
recorded based on number of hours.32 For questions on of interviews, cf. survey administration, in order to adapt
average time or cost, if the respondent offers a range, the the TTLC questionnaire as accurately as possible to reflect
surveyor may record the mean. the process of the specific supply chain under analysis.

Finally, qualitative data are also collected systematically

during the interview process, which are subsequently
consolidated and used to aid in the interpretation of
results.

SURVEY LIMITATIONS
The reliability and validity of survey-based methodologies
such as the TTLC may be affected by several factors such
as those listed below. Measures have been taken to address
these potential sources of bias to the greatest extent
possible.

Survey fatigue
Even though respondents are only asked a subset of the
full questionnaire, the survey can last between 45 and 90
minutes, posing a risk of survey-taking fatigue. A strategy
to partially mitigate this risk is to carefully prepare the
respondent for the duration and complexity of the survey
beforehand and to highlight the importance of the data
collected and the potential benefits they may generate to
the respondent’s business.

Perception bias
The data collected are based on recall, which may lead to
inaccurate responses. Bias of this type can be reflected in
higher variance in the data. However, since data targeted
by the TTLC has a built-in high variance that is unrelated to
issues with recall, it is necessary to collect a high enough
number of data points to ensure variance converts to a
stable level.

Reluctance
Respondents may be reluctant to share detailed
information on the occurrence or magnitude of costs
that result from sensitive processes, such as unreceipted
payments. Low response rates or undervaluation may lead
to underestimation of costs. The TTLC partially addresses
such issues by ensuring that responses remain strictly
confidential.

Non-populated strata
The sampling methodology used for the TTLC may
also be a source of bias. Smaller companies that are
outside of the extended network of the Alliance may
be underrepresented in the sample. This may lead to
an underestimation of the costs of trade if local SMEs
typically have less resources and capital invested in supply
chain management and technologies compared to larger
companies. An analysis of the sample composition may
provide additional insights on the robustness of the results.

31. Assuming the respondent provides an answer based on the recollection of

the experiences of the previous month
32. For example, if the respondent reports a process to be taking two days, this
answer would be recorded as 48 hours.

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 12
4. COMPUTATION OF THE TTLC RESULTS

4. COMPUTATION OF THE
TTLC RESULTS

DATA COMPUTATION AND AGGREGATION DATA MANAGEMENT AND IMPUTATION

The TTLC results are computed by adding the time and The method used to detect outliers depends on the
costs required to complete all the supply chain processes number of non-missing responses for a given survey
highlighted in the framework. The Appendix provides question. Outliers are flagged when values are greater (or
a standardised list of indicators – sourced from survey lower) than two and three standard deviations from the
questions and secondary data – that are used to compute mean. Once flagged, outliers are analysed and treated on a
time and cost for each process. The level of granularity and case-by-case basis. Additional characteristics within- and
scope of the questions are generally adapted to reflect across- respondents are then considered to assess whether
country-specific features in the supply chain and project the data should be excluded or corrected. Any subsequent
requirements. modifications to the database are tracked and annotated.

The varying scope of the TTLC raises potential challenges When the number of responses for a given survey question
with regards to data aggregation when reporting the is too low to assess outliers based on deviations from
overall results. For a given product, the costs of importing the sample mean, data are instead inspected visually
or exporting can vary within the same country depending for anomalies. In cases where data for an indicator are
on the point of entry or exit, the transport corridors and missing or deemed unreliable, they can be imputed
the ports through which the goods transit. Ports, for with compatible external data or with estimates derived
instance, can be managed by different terminal operators from anecdotal evidence and validated by peer industry
proposing different fee structures and operating with experts. Such instances would be reported in the technical
varying levels of efficiency. documents supporting the TTLC results summary to
ensure transparency.
Time and costs also tend to vary across products.
These may need to be transported in refrigerated vs
dry containers, which are usually subject to different
fee structures. Additionally, certain products are more
frequently selected for physical inspection by customs,
which can slow down the import or export process and
increase costs.

In cases where the scope of the TTLC allows for a number

of attributes for each selection criteria (e.g. port, terminal,
sector, transport mode, etc.), the results are aggregated
using weighted averages. Aggregation is typically
applied for goods traded in comparable loading units
(containerised vs bulk goods) and transport methods
(maritime vs air freight).

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4. COMPUTATION OF THE TTLC RESULTS

5. TTLC IMPLEMENTATION

The implementation of the TTLC can be divided into four Scoping mission
distinct phases: inception, data collection, data analysis
and reporting. Each phase entails a set of activities that The first objective of the scoping mission is to adapt the
are summarised in this section. Completing a TTLC takes TTLC to the local context, i.e. piece together the logical
an average of four to six months (longer in a few complex sequences of the supply chain and map the relevant
cases) depending on the type of TTLC being implemented indirect costs to inform the design and content of the
(diagnostic or impact assessment), the complexity of survey instrument.
the supply chain, and the level of experience of the
While some information on the export and import
implementing staff.
processes for a given country is publicly available, an
initial round of interviews with local experts and key
stakeholders (importers, exporters, freight forwarders,
terminal operators, customs and other border agencies as
dictated by the local context) is useful to complement or
PHASE 1 – INCEPTION validate the information collected previously through desk-
based research. Interviews with importers and exporters
The first phase of the TTLC is dedicated to defining the are typically conducted with the logistics specialist or
scope of the study and the sampling strategy that will manager, but might require a first introductory meeting
guide data collection activities. Based on findings from with senior management. These initial interviews follow a
desk and field assessments, the researchers adapt the semi-structured format, guided by a set of pre-determined
survey instrument that will be deployed in phase 2 of the questions and topics. Questions about the import and
implementation process. export processes are open-ended to allow the interviewer
to ask follow-up questions to further investigate new
Setting the scope information.

At the beginning, the researcher is required to determine A second objective of the scoping mission is to gather
the purpose and the basic assumptions of the TTLC study. initial estimates of transit times across the supply chain
Whether it is implemented as a diagnostic or an impact and understand how and why these times can vary. This
assessment tool will influence the overall design of the will allow the researcher to exploit already existing logistics
study. If the purpose is to measure impact, the sampling data sets and tracking statistics, and better evaluate the
strategy and the development of key performance quality of the data collected at the onset of the survey
indicators integrated in the survey instrument will need activities. During the field visit, the researchers should also
to be adapted to the scope of the project in close gather qualitative data on the performance of the supply
coordination with the project manager. chain to facilitate the interpretation of results during the
data analysis phase.
It is recommended to develop a concept note for the
study as a reference document for internal and/or external Site visits to key supply chain facilities such as ports,
use in close consultation with relevant trade facilitation terminals, factories, CFS/ICDs and other clearing facilities
experts in/from the country concerned. The document should be planned to provide a practical understanding
should briefly highlight the background of the study and of the sequence of activities and assess the quality of
its sampling strategy. It should also specify the direction of infrastructure. By the end of the scoping mission, the
the trade flow considered, the targeted products according researcher should be capable of pinpointing potential
to their HS2 code and rationale for their selection, the bottlenecks and inefficiencies in the domestic supply chain.
targeted ports of entry/exit and their relevant terminals,
the main inland transport corridors given the selected A third objective of the scoping mission is to engage
ports and traded products, and the loading option/modes with key local stakeholders (e.g. business associations,
of the transported cargo (e.g. 20ft, 40ft containers, bulk, relevant government entities, terminal operators, etc.) to
etc.). Establishing these basic assumptions will facilitate facilitate access to the interviewees for the data collection
the development of the sample frame for the data activities and, potentially, to request access to non-public
collection and guide the objectives of the scoping mission. quantitative data from cooperative stakeholders that could
be used for the computation and/or triangulations of
results.

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5. TTLC IMPLEMENTATION

interview, while ensuring confidentiality. At this point, the

interviewer can begin administering the survey.

At the end of the survey, the respondent can choose to

PHASE 2 – DATA COLLECTION completely anonymise the information shared during the
interview.
The second phase of the TTLC involves all activities related
to the data collection process. This phase includes the
preparation of the survey instrument, the recruitment of a
survey team to administer the survey and the execution of
the data collection itself.
PHASE 3 – DATA ANALYSIS
Adapting the survey instrument The structured interviews provide detailed information
Based on the findings from the desk research and on the lead times and costs for all steps of the supply
the scoping mission, the structure and content of the chain. The raw data are carefully inspected for outliers and
survey instrument are adapted to reflect the context coding errors. Average transit time and costs by process
of the country under analysis, and in case of impact are then computed for each product type. More details
assessment, to be fully in line with the project’s scope and about the computation of the results are detailed in the
specifications. The researcher (in consultation with the Appendix.
project manager in the case of an impact assessment)
should determine the level of detail of the questions while The results are triangulated with data from external
remaining mindful about how it will impact the duration of sources (e.g. national logistics datasets, time release
the interview. studies done with/through the customs administration,
local port/sectorial tracking data using time stamps,
indicators from World Bank’s Trading across Borders
Assembling a survey team dataset33) and subsequently shared with in-country
experts and project partners, if applicable, for validation.
Typically, a surveyor or small survey team (typically two
Additional semi-structured interviews with domestic
to five members) is recruited in the country of study
supply chain experts can be organised after finalising the
to administer the adapted TTLC survey. The surveyors
results to shed further light on the factors driving transit
are tasked with both scheduling the interviews with
times and costs.
the respondents defined in the sample frame and
administering the survey in the field. The qualitative data gathered during the initial field visit
and the logbook provided by the survey team should help
Before the first surveys are administered, the team is
the researchers with the interpretation and the cross-
carefully instructed on survey ethics and the background
referencing of results. Inconsistencies can be investigated
of the study to effectively communicate its relevance to
further by following up with respondents.
the respondents and ensure their full participation. The
team is also thoroughly briefed on the concepts measured
in each section of the survey to minimise the possibility of
misinterpreting the questions and responses. The team is
further briefed, as needed, on the technical terminology
used in the survey and on managing unit conversions PHASE 4 – REPORTING
during the interview to minimise data inconsistencies.
The final step in the implementation process is the
dissemination of the TTLC results.
Conducting the data collection
The results are presented in aggregated form to prevent
Interviews follow a structured format meaning that
direct inferences to the respondents.34 These are meant
respondents have specific, closed-ended questions to
to provide insights on the performance of the supply
answer. These questions concern the average, maximum,
chain, allowing stakeholders to identify which areas of
and minimum time and costs required to complete each
intervention could potentially generate the most impact
step of the domestic import and export processes. The
on cost reduction in the specific country for the sectors/
questions also aim to estimate the value of the indirect
modes/ports of entry/exit under consideration.
costs identified in phase 1 of the study.
If the TTLC is used as a diagnostic tool, the results are
Each interview lasts between 45 and 90 minutes. The
presented at an in-country stakeholder workshop to
duration typically varies depending on the type of
provide a holistic perspective on the performance of
stakeholder (e.g. shipper, importer/exporter, freight
the supply chain. If used as an impact assessment, the
forwarder, etc.), and the overall level of knowledge of
initial TTLC survey is used as a baseline and must be
the respondent on logistical activities. Interviewers are
complemented by a follow-up survey to be implemented at
expected to take note of relevant observations in a
the end of project implementation (or at a time determined
logbook, independent from the questionnaire.
sufficient to observe results).
The interviewer begins each interview by introducing the
background and purpose of the study and its relevance to
the respondent. The interviewers should then confirm with
the respondent whether they agree with continuing the 33. Typically, time and cost indicators for border and documentary compliance
34. TTLC country datasets remain the propriety of the Alliance and are not
shared with third parties.

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 15
5. TTLC IMPLEMENTATION

TABLE 2: OVERVIEW OF TTLC IMPLEMENTATION ACTIVITIES

ESTIMATED NUMBER
PHASE ACTIVITIES OF WORKING DAYS
(RANGE)

1 INCEPTION PHASE 18 - 29

Define TTLC research scope 1 - 2

Draft concept note 2 - 3

Design sample frame 1 - 2

Gather data from secondary sources 2 - 3

Field visit

Schedule meetings with key stakeholders 3 - 5

Schedule site visits 1 - 2

Conduct interviews 3 - 5

Review survey instrument 5 - 7

2 DATA COLLECTION 46 - 64

Procurement of survey team (incl. assessment, interviews) 3 - 5

Draft contracts 1 - 1

Train survey team (including preparation) 2 - 3

Schedule meetings for interviews 10 - 15

Data collection (75 interviews at 2.5 interviews/day) 30 - 40

3 DATA ANALYSIS 13.5 - 20

Quantitative data

Data cleaning 1 - 2

Identify questions to be used in the analysis 2 - 3

Data processing 5 - 8

Generate data outputs (tables graphs) 2 - 3

Qualitative data

Consolidate interview notes, field observations 1 - 2

Analyse qualitative data 2 - 3

Disseminate preliminary results for validation 0.5 - 1

4 REPORTING 3 - 5

Draft analysis and conclusions 2 - 3

Presentation of results 1 - 2

TOTAL 80.5 - 118

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 16
APPENDIX

APPENDIX:
TTLC COMPUTATION STRUCTURE
The computation structure of the TTLC maps the This section provides an overview of the main indicators
processes and sub-processes measured in the supply use to calculate:
chain. It also displays the individual indicators used for
the computation of each concept. 1. IMPORT TIME
2. EXPORT TIME
Given the varying supply chain structures across 3. IMPORT COSTS (DIRECT AND INDIRECT)
countries, the model presented in this section provides
4. EXPORT COSTS (DIRECT AND INDIRECT)
a list of core processes and indicators measured in the
TTLC, which can be extended or adapted according to
the country-specific procedures and the level of detail
desired by the researchers.

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 17
APPENDIX

1. IMPORT TIME

CODE VARIABLE UNIT

TRANSIT TIME Hours

1 DOCUMENTATION COMPLIANCE PROCESS (UNTIL DISCHARGE) Hours

1.1 Manifest submission Hours/shipment

1.11 Time prior to submission of manifest Hours/shipment

1.2 Documentation compliance time Hours/shipment

1.21 Time for obtaining documentation Hours/shipment

1.22 Time for preparing documentation Hours/shipment

1.23 Time for submitting documentation Hours/shipment

1.24 Time for processing documentation Hours/shipment

1.3 Classification and valuation issues Hours/shipment

1.31 Additional time for solving classification and valuation issues Hours/shipment

1.32 Relative frequency of classification and valuation issues Percent

2 SHIP INWARD PROCESS Hours

2.1 Ship inward clearance time Hours

3 DISCHARGE PROCESS Hours

3.1 Terminal handling Hours

3.11 Unloading time Hours

3.2 Administrative operations Hours

3.21 Payment of handling fee Minutes

3.22 Release by shipping line Minutes

4 BORDER CLEARANCE PROCESS

4.1 Border clearance operations Hours

4.11 Transport from sea terminal to stacking yard/CFS/ICD/other depot Hours

4.12 Arrival of cargo to filing of import declaration Hours

4.13 Payment of customs duty Hours

4.14 Payment of duty to registration of documents Hours

4.15 Registration of documents to final customs clearance Hours

4.2 Physical inspection Hours

4.21 Physical inspection time Hours

4.22 Relative frequency of physical inspections Percent

4.3 Scanning Hours

4.31 Scanning time Hours

4.32 Relative frequency of scanning Percent

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 18
APPENDIX

CODE VARIABLE UNIT

5 DWELL TIME Hours

5.1 Container dwell time Days/loading unit

6 INLAND TRANSPORT PROCESS Hours

6.1 Time slot for container collection Hours

6.11 Waiting time for pick-up Hours

6.2 Inland transport time Hours

6.21 Driving to sea port to pick up import container Minutes

6.22 Waiting to gate-in to terminal at sea port Minutes

6.23 Gating into port Minutes

6.24 Waiting to gate-in to terminal Minutes

6.25 Gating into terminal and delivering container Minutes

6.26 Waiting while customs exit control Minutes

6.27 Gating out of terminal Minutes

6.28 Gating out of port Minutes

6.29 Transporting import container to ICD/CFS/free zone Minutes

6.3 Transporting import container to final destination Minutes

6.31 Waiting while container is being stripped Minutes

6.32 Delivering empty container at depot Minutes

2. EXPORT TIME

CODE VARIABLE UNIT

TRANSIT TIME Hours

1 DOCUMENTATION COMPLIANCE PROCESS (UNTIL DISCHARGE) Hours

1.1 Documentation compliance time Hours/shipment

1.11 Time for obtaining documentation Hours/shipment

1.12 Time for preparing documentation Hours/shipment

1.13 Time for submitting documentation Hours/shipment

1.14 Time for processing documentation Hours/shipment

2 BORDER CLEARANCE PROCESS Hours

2.1 Container sealing (if not self-sealing) Hours

2.11 Time required to seal the container Hours

2.2 Documentation review Hours

2.21 Relative frequency of documentation review Hours

2.22 Documentation review time Hours

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 19
APPENDIX

CODE VARIABLE UNIT

2.3 Physical inspection Hours

2.31 Physical inspection time Hours

2.32 Relative frequency of physical inspections Percent

2.4 Scanning Hours

2.41 Scanning time Hours

2.42 Relative frequency of scanning Percent

3 INLAND TRANSPORT PROCESS Hours

3.1 Weighing process Hours

3.11 Time required to weigh a container empty Minutes

3.12 Time required to weigh a container full Minutes

3.13 Time required to weigh a truck empty Minutes

3.14 Time required to weigh a container full Minutes

3.2 Inland transport time Hours

3.21 Driving to depot for picking up empty container Minutes

3.22 Waiting at the depot for delivery of empty container Minutes

3.23 Driving to stuffing site Minutes

3.24 Waiting while container is being stuffed Minutes

3.25 Waiting while customs assesses of export declaration Minutes

3.26 Waiting while container is being sealed Minutes

3.27 Waiting while stuffed container is being loaded onto truck Minutes

3.28 Transporting stuffed container to sea port Minutes

3.29 Waiting to gate-in to sea port Minutes

3.3 Gating into sea port Minutes

3.31 Waiting to gate-in to terminal Minutes

3.32 Gating into terminal and delivering container Minutes

3.33 Waiting while customs exit control Minutes

3.34 Gating out of terminal Minutes

3.35 Gating out of port Minutes

4 CONTAINER LOADING PROCESS Hours

4.1 Retrieving container from the stack Hours

4.2 Loading container on the vessel Minutes

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 20
APPENDIX

3. IMPORT COSTS (DIRECT & INDIRECT)

CODE VARIABLE UNIT

A DIRECT COST USD/loading unit

1 DOCUMENTATION COMPLIANCE PROCESS (UNTIL DISCHARGE) USD/loading unit

1.1 Manifest submission costs USD/shipment

1.11 Administrative fees USD/shipment

1.12 Unreceipted payments USD/shipment

1.13 Other fees USD/shipment

1.2 Manifest amendments costs USD/shipment

1.21 Relative frequency of manifest amendments Percent

1.22 Administrative fees USD/shipment

1.23 Unreceipted payments USD/shipment

1.24 Other fees USD/shipment

1.3 Documentation costs USD/shipment

1.31 Cost of documentation USD/shipment

1.4 Labour costs of documentation compliance USD/shipment

1.41 Average hourly labour costs USD/hour

1.42 Time for obtaining documentation Hours/shipment

1.43 Time for preparing documentation Hours/shipment

1.44 Time for submitting documentation Hours/shipment

2 SHIP INWARD PROCESS USD/loading unit

n.a. n.a. n.a.

3 DISCHARGE PROCESS USD/loading unit

3.1 Terminal charges USD/loading unit

3.11 Terminal handling charges USD/loading unit

3.12 Delivery fee USD/loading unit

3.13 Inspection charge - move container to inspection area USD/loading unit

3.14 Inspection charge - stripping/stuffing container USD/loading unit

3.15 Reefer plug (if relevant) USD/day

3.16 Weighing bridge fee USD/loading unit

3.2 Shipping line charges USD/loading unit

3.21 Documentation release fee USD/loading unit

3.22 Port additional charges USD/loading unit

3.23 Other fees USD/loading unit

3.24 Port charges USD/loading unit

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 21
APPENDIX

CODE VARIABLE UNIT

4 BORDER CLEARANCE PROCESS

4.1 Border clearance costs USD/loading unit

4.11 Border clearance costs (excl. inspections, scanning, classification issues) USD/loading unit

4.2 Physical inspection costs USD/loading unit

4.21 Relative frequency of physical inspections USD/loading unit

4.22 Inspection fees - inspecting agencies USD/loading unit

4.23 Unreceipted payments - inspecting agencies USD/loading unit

4.24 Other fees - inspecting agencies USD/loading unit

4.25 Inspection fees - terminal USD/loading unit

4.26 Unreceipted payments - terminal USD/loading unit

4.27 Other fees - terminal USD/loading unit

4.3 Scanning costs USD/loading unit

4.31 Relative frequency of scanning USD/loading unit

4.32 Scanning fees - inspecting agencies USD/loading unit

4.33 Unreceipted payments - inspecting agencies USD/loading unit

4.34 Other fees - inspecting agencies USD/loading unit

4.35 Scanning fees - terminal USD/loading unit

4.36 Unreceipted payments - terminal USD/loading unit

4.37 Other fees - terminal USD/loading unit

4.4 Classification and valuation issue USD/loading unit

4.41 Relative frequency of valuation and classifications USD/loading unit

4.42 Cost of solving the issue USD/loading unit

5 INLAND TRANSPORT USD/loading unit

5.1 Transportation charges and fees

5.11 Inland transport USD/loading unit

5.12 Empty container delivery USD/loading unit

6 CONTAINER STRIPPING USD/loading unit

6.1 Container stripping costs USD/loading unit

6.11a Handling fees (if done by CFA) USD/loading unit

6.11b Labour costs (if done by importer/exporter) USD/hour

6.12 Unreceipted payments USD/loading unit

6.13 Other fees USD/loading unit

B INDIRECT COST USD/loading unit

1 DEMURRAGE AND DETENTION COSTS (REPORTED SEPARATE) USD/loading unit

1.1 Demurrage costs USD/loading unit

1.11 Relative frequency of demurrage charges Percent

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 22
APPENDIX

CODE VARIABLE UNIT

1.12 Number of days charged Days/loading unit

1.13 Daily demurrage rate (period 1) USD/loading unit/day

1.14 Daily demurrage rate (period 2) USD/loading unit/day

1.2 Detention costs USD/loading unit

1.21 Frequency of detention Percent

1.22 Number of days charged Days

1.23 Daily detention rate (period 1) USD/loading unit/day

1.24 Daily detention rate (period 2) USD/loading unit/day

2 STORAGE COSTS USD/loading unit

2.1 Terminal storage costs USD/loading unit

2.11 Share of shipments cleared/stored in container terminal Percent

2.12 Frequency of storage Percent

2.13 Number of days charged Days

2.14 Daily storage rate at terminal (period 1) USD/loading unit/day

2.15 Daily storage rate at terminal (period 2) USD/loading unit/day

2.2 Free zone warehouse/ICD/CFS storage costs USD/loading unit

2.21 Share of shipments cleared/stored in container terminal Percent

2.22 Frequency of storage Percent

2.23 Days charged storage Days

2.24 Daily storage costs at inland clearance facility (period 1) USD/loading unit/day

2.25 Daily storage costs at inland clearance facility (period 2) USD/loading unit/day

3 INVENTORY COSTS USD/loading unit

3.1 Number of days of additional inventory Days

3.2 Average number of days of delay Days

3.3 Value of the content of the container USD/loading unit

4 BREAKAGE AND SPOILAGE COSTS USD/loading unit

4.1 Relative frequency of breakage and spoilage Percent

4.2 Percentage lost cargo value Percent

4.3 Value of the content of the container USD/loading unit

5 THEFT OF CARGO COSTS USD/loading unit

5.1 Relative frequency of incidences of theft Percent

5.2 Share of cargo lost from container Percent

5.3 Value of the content of the container USD/loading unit

6 LOST ORDERS USD/loading unit

*The indicators used to estimate the value lost orders vary significantly depending on the
n.a. USD/loading unit
country and products assessed.

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 23
APPENDIX

CODE VARIABLE UNIT

7 LOST PRODUCTION USD/loading unit

*The indicators used to estimate the value of lost production vary significantly depending on
n.a. USD/loading unit
the country and products assessed.

8 PENALTIES FOR LATE DELIVERY USD/loading unit

*The indicators used to estimate penalties vary significantly depending on the country and
n.a. USD/loading unit
products assessed.

4. EXPORT COSTS (DIRECT & INDIRECT)

CODE VARIABLE UNIT

A DIRECT COST USD/loading unit

1 DOCUMENTATION COMPLIANCE PROCESS (UNTIL DISCHARGE) USD/loading unit

1.1 Cost of documentation USD/shipment

1.11 Cost of documentation USD/shipment

1.2 Labour costs of documentation compliance USD/shipment

1.21 Average hourly labour costs USD/shipment

1.22 Time for obtaining documentation USD/shipment

1.23 Time for preparing documentation USD/shipment

1.24 Time for submitting documentation USD/shipment

2 CONTAINER STUFFING PROCESS USD/loading unit

2.1 Container stuffing costs USD/loading unit

2.11a Handling fees USD/loading unit

2.11b Labour costs (if done by importer/exporter) USD/hour

2.12 Unreceipted payments USD/loading unit

2.13 Other fees USD/loading unit

3 BORDER CLEARANCE PROCESS USD/loading unit

3.1 Container sealing USD/loading unit

3.11 Cost of sealing a container USD/loading unit

3.2 Documentation review USD/loading unit

3.21 Relative frequency of documentation review Percent

3.22 Cost of documentation review USD/loading unit

3.23 Unreceipted payments USD/loading unit

3.24 Other fees USD/loading unit

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 24
APPENDIX

CODE VARIABLE UNIT

3.3 Physical inspection costs USD/loading unit

3.31 Relative frequency of physical inspections Percent

3.32 Inspection fees - inspecting agencies USD/loading unit

3.33 Unreceipted payments - inspecting agencies USD/loading unit

3.34 Other fees - inspecting agencies USD/loading unit

3.35 Inspection fees - terminal USD/loading unit

3.36 Unreceipted payments - terminal USD/loading unit

3.37 Other fees - terminal USD/loading unit

3.4 Scanning costs USD/loading unit

3.41 Relative frequency of scanning Percent

3.42 Scanning fees - inspecting agencies USD/loading unit

3.43 Unreceipted payments - inspecting agencies USD/loading unit

3.44 Other fees - inspecting agencies USD/loading unit

3.45 Scanning fees - terminal USD/loading unit

3.46 Unreceipted payments - terminal USD/loading unit

3.47 Other fees - terminal USD/loading unit

4 INLAND TRANSPORT PROCESS USD/loading unit

4.1 Inland transport costs USD/loading unit

4.11 Total inland transport costs USD/loading unit

4.2 Weighing USD/loading unit

4.21 Costs of weighing a container empty USD/loading unit

4.22 Costs of weighing a container full USD/loading unit

4.23 Costs of weighing a truck empty USD/loading unit

4.24 Costs of weighing a container full USD/loading unit

5 CONTAINER LOADING PROCESS USD/loading unit

5.1 Terminal charges USD/loading unit

5.11 Terminal handling charges USD/loading unit

B INDIRECT COST USD/loading unit

1 BREAKAGE AND SPOILAGE COSTS USD/loading unit

1.11 Relative frequency of breakage and spoilage Percent

1.12 Share of cargo lost per container Percent

1.13 Value of container content USD/loading unit

2 THEFT OF CARGO COSTS USD/loading unit

2.11 Relative frequency of theft Percent

2.12 Share of cargo lost per container Percent

2.13 Value of container content USD/loading unit

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 25
APPENDIX

CODE VARIABLE UNIT

3 LOST ORDERS USD

n.a. *The indicators used to estimate this vary depending on the country and products assessed. Percent

4 PENALTIES FOR LATE DELIVERY USD

n.a. *The indicators used to estimate this vary depending on the country and products assessed. USD

5 LATE GATE-IN TO TERMINAL USD

5.1 Shut out costs USD/loading unit

5.11 Relative frequency of containers that are shutout Percent

5.12 Shut-out charges USD/loading unit

5.2 Missing scheduled vessel costs USD/loading unit

5.21 Relative frequency of missed vessels Percent

5.22 Waiting time in terminal before next vessel Days

5.23 Days of ground rent or storage charged Days

5.24 Daily ground rate or storage costs (period 1) USD/loading unit/day

5.25 Daily ground rate or storage costs (period 2) USD/loading unit/day

5.3 Additional demurrage costs USD/loading unit

5.31 Extra demurrage days Days

5.32 Demurrage per day cost USD/loading unit/day

5.4 Additional detention costs USD/loading unit

5.41 Extra Detention days Days

5.42 Detention per day cost USD/loading unit/day

GLOBAL ALLIANCE FOR TRADE FACILITATION TTLC METHODOLOGICAL NOTE SEPTEMBER 2020 26
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