Halal logistics refers to the management of supply chains in accordance with Islamic law (Shariah), which imposes stricter requirements than conventional logistics. With conventional logistics, the primary concerns are efficiency, cost-effectiveness, and quality control, but with halal logistics, produce must be segregated from any haram (forbidden) substances at every stage of the supply chain to prevent cross-contamination.
For example, halal foods cannot share facilities or equipment with pork, alcohol, or other haram items. This necessitates additional measures such as dedicated storage areas, exclusive utensils and handling equipment for halal goods, and sanitation protocols that go beyond simple cleaning routines.
Another key difference is documentation. Halal logistics requires maintaining detailed records and halal certificates for products, ingredients, and processes to prove compliance at every step in the supply chain. Where a conventional supply chain might only track batches for quality or recall purposes, halal supply chains track the entire journey from the manufacturer to the end consumer, generating halal certification papers and labels at each stage. Any break or deviation in this chain – such as a halal product being stored or transported alongside haram goods without proper barriers – can cause the product to lose its halal status.
Certification processes
Halal certification is a critical component of modern halal supply chains. Major certification bodies like Malaysia’s JAKIM, Indonesia’s BPJPH and LPPOM MUI, Singapore’s MUIS, and the UAE‘s ESMA have established comprehensive standards governing the handling, storage, and transportation of halal products.
To be certified in halal logistics, companies must demonstrate end-to-end compliance across their operations, including warehousing, transportation, and distribution networks. This involves implementing strict protocols such as dedicated halal storage zones, proper product segregation, and detailed documentation. A notable development occurred in 2024 when Indonesia became the first country to legally mandate halal certification for logistics providers handling halal food products, signalling a shift from product-only certification.
Companies typically implement a Halal Assurance System (HAS) to maintain compliance, incorporating Halal Critical Control Points (HCCPs) to identify and mitigate contamination risks. Regular audits ensure continued adherence to standards, with inspections covering aspects such as the cleanliness and condition of warehouses and shipping containers. This systematic approach often yields broader benefits, as the discipline required for halal compliance frequently leads to improved process management and increased operational efficiency.
The global nature of halal trade has prompted efforts to harmonise certification standards internationally. JAKIM’s certification, recognised by 88 organisations worldwide, serves as one of the leading benchmarks. However, the current lack of universal standards means logistics providers must often navigate multiple certification requirements for different markets. Industry bodies like the Standards and Metrology Institute for Islamic Countries (SMIIC) are working to address these disparities, though a unified global standard remains a work in progress.
Global regulatory environments
The regulation of halal logistics varies significantly across regions, with countries across Asia, the Middle East, and Europe adopting very different approaches to certification, infrastructure development, and regulatory oversight.
In Southeast Asia, countries such as Malaysia and Indonesia have earned global recognition for their stringency and reliability. Malaysia has pioneered formal standards through its MS 2400 series, while Indonesia has taken an even more decisive step with its Halal Law No. 33, which mandates halal certification for both food products and their supply chain partners by October 2024. This groundbreaking legislation shifts focus from product-based to supply chain-based certification, requiring all logistics providers handling halal products to obtain certification. Both regions also support these initiatives with dedicated infrastructure, such as Halal Industrial Zones and specialised ports.
Middle Eastern nations, which traditionally focus on product and slaughter certifications, are increasingly expanding their oversight to include logistics operations. The UAE and Saudi Arabia maintain strict import requirements through bodies like ESMA and SFDA and are continuously developing specialised infrastructure to support halal trade. Dubai has positioned itself as a global halal trade centre, featuring dedicated zones in Dubai Industrial City and specialised facilities at Jebel Ali Port. However, balancing rigorous halal standards with cost considerations is a challenge, with industry leaders frequently advocating for a practical and cost-effective solution. This may ultimately result in a graded system that would assess different levels or aspects of compliance.
In stark contrast to the previous two, European countries have adopted a market-driven approach rather than government mandates. Major ports like Rotterdam, Marseille, and Antwerp have developed dedicated halal facilities to facilitate trade with Muslim-majority nations. These initiatives often involve partnerships with European halal certification bodies to ensure compliance with international standards. Multinational logistics providers operating in Europe, such as DHL, have developed specialised guidelines for halal logistics, and some freight forwarders now focus exclusively on halal supply chains. This has enabled European businesses to facilitate halal trade networks, but arguably not to the same extent as their counterparts in the Middle East and Southeast Asia.
End-to-end supply chain integration
End-to-end halal compliance requires comprehensive integration across the entire supply chain, from raw material sourcing to final delivery. The Halal Assurance System (HAS) serves as the foundation for this. This system ensures strict adherence to protocols for dedicated production lines, cleaning procedures, and storage zones, identifying and controlling HCCPs where non-compliances may occur. It also advocates for physical segregation at the factory, warehouse, and transportation hubs, ensuring that halal products remain isolated from non-halal influences throughout every stage of production and distribution. Where complete segregation is unfeasible, companies employ strict zoning, labelling, and tamper-proof sealing methods to meet minimum compliance standards.
The cost implications of maintaining these standards are substantial and can outprice non-halal logistics by up to 15%, with additional expenses arising from dedicated storage, cleansing, certification, and training requirements. This creates particular challenges for smaller enterprises.
Supply chain complexity also introduces additional challenges, as multiple handlers and transfer points increase the risk of compliance breaches. Companies’ compliance requirements extend to these vendors and logistics partners, and so many will require halal certification or specific handling protocols as a non-negotiable prerequisite for partnership. Digital traceability systems can provide vital oversight but may prove costly and challenging to implement. Consequently, many companies still rely on manual processes, making real-time transparency challenging.
Regardless of the degree to which technology is used, maintaining continuous compliance requires constant vigilance. The human element needs to be carefully managed and trained. While regular auditing processes serve as additional safeguards. Operational changes and staff turnover can quickly create compliance gaps, so companies ought to implement robust onboarding, training, and monitoring protocols to mitigate these risks. This should include conducting periodic testing for haram substances. While keeping detailed and thorough documentation currently demands significant administrative effort, it ultimately ensures greater transparency and accountability. This helps strengthen and reinforce the integrity of the compliance framework and fosters trust with regulators and consumers alike.
Future outlook
While the operational challenges in halal logistics are significant, the industry is gradually meeting them through a mix of improved standards, technologies, and process innovations. Providers who successfully navigate these challenges can tap into a growing market, but they must remain agile and vigilant.
At Farrelly Mitchell, we understand the intricate requirements of halal logistics and the broader food and agribusiness sector. Our expertise spans regulatory advisory, supply chain optimisation, certification guidance, and digital traceability solutions. Our commercial team helps businesses build supply chains capable of navigating halal requirements, while our policy and regulation experts can help governments, NGOs, and standards authorities develop the processes, regulations, infrastructure, and frameworks essential for enabling robust, transparent, and efficient halal supply chains.
Get in touch today to explore how our expert advisory services can future-proof your halal supply chains today.
