126
SĂĄez and Lanoszka
cargo handling, transport agency services, and customs brokerage (World Bank 2009). The second set of activities is known as related freight logistics services, within which the transportation services that are integral to the movement of goods throughout the supply chain are included. Most core logistics providers also engage in transportation services. Related freight logistics services may be supplied by firms that use their own equipment and transportation fleets or by firms that act as intermediaries between clients and transportation firms. Noncore freight logistics services represent the third set of activities. These services cover fleet maintenance and repair, packing services, computer and related services, and management consulting. They are inputs or value added services for the supply chain, but they do not necessarily generate revenue. Thus, the regular maintenance and repair of transport equipment ensure the integrity of transport fleets, although they are not necessarily offered as third-party services to client firms (USITC 2005). Also, while data and message transmission services and other telecommunication services are value added services that are necessary in tracking the movement of goods, they are often integrated with the core freight logistics or related freight logistics services (World Bank 2009).
Restrictions on the Trade in Logistics Services If they become engaged in international operations, logistics service providers face four groups of constraints embedded in the domestic and international regulations that affect the services they offer. Some of the constraints are common to other service activities, but others are specific to logistics services. Table 4.1 provides concrete examples of the limitations faced by logistics service providers. One group of constraints is related to market access and discriminatory regulations (involving national treatment violations). Joint venture requirements for foreign investment, rules on the legal entities allowed to provide services, and limitations on foreign ownership affect certain logistics activities such as transportation services. Restrictions on the movement of persons and requirements to employ nationals in certain services also affect the provision of logistics services. These limitations narrow the modes of supply available to providers for the delivery of services. Another group of constraints is related to the access and use of infrastructure to provide logistics services. In broad terms, there are two types of logistics service providers: asset-based providers and non–asset-based providers. The former use their own equipment and transportation fleets,