Chartering Cost Optimisation and Relationship-Based Strategies in the Logistics Industry: An Empirical Study of a Mid-Sized Indian Logistics Firm

How chartering cost strategies translate into business trust — and what sits between them — is not
something the existing literature has examined well, particularly in the context of mid-sized Indian
logistics firms. To bridge that gap, this study investigates chartering cost optimisation practices and
relationship-based strategies at a mid-sized logistics firm operating in the Indian freight market. The three
constructs examined are Chartering Cost Management (CCM), Broker and Owner Relationships (BOR),
and Operational Efficiency (OE). BOR is tested as a mediating variable linking CCM to business
sustainability outcomes. Pearson Correlation, Simple and Multiple Linear Regression, One-Way ANOVA,
Independent Samples t-Test, and Chi-Square Test of Association were applied to primary data collected
from 50 professionals using a structured questionnaire. Results were consistent and directionally clear.
Broker relationship quality (70% rated high impact) emerged as the strongest single cost lever.
Operational delays (46%) ranked as the primary challenge, ahead of cost fluctuation and compliance.
The chi-square test revealed a statistically significant association between chartering strategy type and
cost optimisation effectiveness (p = 0.011). All four hypotheses were confirmed at 95% confidence.
Experience level had the most visible influence on construct scores, while chartering strategy selection
significantly associated with business outcomes. For logistics firms in comparable settings, the findings
suggest that cost discipline and relationship investment are most effective when treated as an integrated
strategic priority rather than separate operational concerns.
Keywords: Chartering Cost Optimisation, Broker Relationships, Logistics Management, Freight Rate
Strategy, Operational Efficiency, Business Sustainability, Indian Logistics