Market Structure Distortion and Load Imbalance as Determinants of Trucking Cost Efficiency: Empirical Evidence from Indonesia’s Logistics Industry

Abstract

The high proportion of logistics costs in Indonesia, accounting for 23.5% of the Gross Domestic Product (GDP), underscores the  urgency  of  improving  efficiency  in  land  transportation systems,  particularly  the  trucking  sector.  This  study  aims  to identify  and  measure  the  simultaneous  effects  of  two  main determinants—load imbalance (empty backhaul) and market structure  distortion—on  the  formation  of  trucking transportation costs. The structural and measurement models were analyzed using Partial Least Squares–Structural Equation Modeling  (PLS-SEM)  with  the  support  of  SmartPLS  software, based  on  primary  data  collected  from  more  than  100 respondents in the logistics industry. The findings reveal that market structure distortion  exerts a dominant influence (β  = 1.278),  followed  by  empty  backhaul  (β  =  0.176),  with  a  high predictive  capability  (R²  =  0.724;  Adjusted  R²  =  0.719).  All constructs  demonstrate  satisfactory  convergent  validity  and high  reliability  (AVE  >  0.626;  CR  >  0.893).  These  results reinforce  the  urgency  of  freight  market  reform  and  the digitalization  of  load  consolidation  systems  as  integrated strategies to reduce national logistics costs.