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CHARTERING COST OPTIMISATION AND RELATIONSHIP-BASED STRATEGIES IN THE LOGISTICS INDUSTRY: AN EMPIRICAL STUDY OF A MID-SIZED INDIAN LOGISTICS FIRM

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Issue Abstract

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, 

Author Information
Girish Kumar V and Dr. Anitha Kumari. D, MBA (Shipping and Logistics Specialization), School of Management Studies, Vels Institute of Science, Technology & Advanced Studies, Chennai-117, Associate Professor, Department of Management Studies, School of Man
Issue No
5
Volume No
6
Issue Publish Date
15 May 2026
Issue Pages
1-15

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