This study aims to analyze the impact of environmental uncertainty and Incoterm on strategic alliances and competitive advantage in the Freight Forwarder Industry in Indonesia. The measuring method examines how variables, including environmental uncertainty, Incoterm, and strategic alliances, affect competitive advantage using SmartPLS technology and structural equation modeling (SEM) analysis. The questionnaire was created using a 5-point Likert scale. Through a simple random selection procedure, study participants selected freight forwarder companies. Validity, reliability, and significance tests—often along with hypothesis testing—are all included in the sequential data analysis. The study has identified the following relationships based on an evaluation of the data processing: Strategic alliances are positively impacted by environmental uncertainty, Incoterm is positively affected by environmental uncertainty, Incoterm is positively influenced by competitive advantage, and strategic alliances are positively affected by competitive advantage. The novelty of this study is the influence of environmental uncertainty and Incoterm on Strategic alliance and competitive advantage in the Freight Forwarder Industry in Indonesia. The theoretical implication supports previous theories on environmental uncertainty and Incoterm to increase competitive advantage through strategic alliances. The practical implication is for the management of a Freight forwarding company to scan the uncertainty of the logistics environment and implement the selection of the right Incoterm to encourage strategic alliances to encourage competitive advantage. This research makes a significant contribution to the advancement of scientific principles, particularly within the field of strategic management. Furthermore, it provides a valuable reference and comparative material for future studies focusing on the impact of environmental uncertainty and Incoterm on strategic alliances and competitive advantage within the freight forwarder industry in Indonesia.