Logistica : Journal of Logistic and Transportation
Vol. 4 No. 1 (2026): January 2026

Integrated Hub-and-Spoke Network Optimization for Inter-Island Freight Distribution in Eastern Indonesia: A Mixed-Method Logistics Framework

Nurlaela Kumala Dewi (Universitas Logistik dan Bisnis Internasional)



Article Info

Publish Date
30 Jan 2026

Abstract

Inter-island freight distribution in Eastern Indonesia faces high logistics costs, low vessel utilization, and fragmented freight flows due to dispersed islands, long distances, and weak port-hinterland integration. This study develops an integrated hub-and-spoke logistics framework to improve efficiency by optimizing hub selection, cargo allocation, routing, shipment frequency, and vessel utilization. A mixed-method design combined qualitative stakeholder analysis with logistics network optimization. Semi-structured interviews with twelve stakeholders—shipping companies, port operators, logistics providers, government agencies, cargo owners, and academics—were analyzed thematically to identify operational issues, translated into decision variables for a mixed-integer linear programming optimization framework, complemented by sensitivity analysis of demand variability, fuel prices, vessel capacity, and schedule disruptions. Findings show the existing system remains fragmented and demand-driven, with vessel utilization at 55–65%, below the preferred 80% threshold. Stakeholders identified cargo consolidation, hub-port development, route optimization, scheduling, port-hinterland integration, and digital information sharing as key performance determinants. Strategically located hubs can reduce port calls, improve cargo aggregation, and lower costs, though direct shipping remains suitable for high-volume or time-sensitive cargo—suggesting a hybrid network combining hub-and-spoke and direct routing offers greater flexibility. Digital coordination among stakeholders is essential for schedule reliability. The study concludes that the integrated framework combines stakeholder knowledge with optimization principles, offering practical guidance for reducing costs and strengthening regional maritime connectivity in Eastern Indonesia.

Copyrights © 2026






Journal Info

Abbrev

logistica

Publisher

Subject

Transportation

Description

Logistica : Journal of Logistic and Transportation with ISSN Number 3032-2766 (Online) published by Indonesian Scientific Publication, is a leading scholarly journal that has undergone rigorous peer review and operates under an open-access model. Since its inception, Logistica has been dedicated to ...