Lane (Shipping)
Also known as: Shipping Lane, Trade Lane, Freight Lane
Definition
A shipping lane is a specific route or corridor between an origin and destination point. Lanes are fundamental to transportation planning, pricing, and carrier management, as rates and performance often vary significantly by lane.
Lane Definition Levels
| Level | Example | Use Case |
|---|---|---|
| Zip to Zip | 90210 to 10001 | Parcel pricing |
| City to City | Los Angeles to New York | Route planning |
| Region to Region | West Coast to Northeast | Network analysis |
| Country to Country | USA to Germany | International trade |
| Port to Port | LA/LB to Shanghai | Ocean freight |
Lane Characteristics
Volume
- High-volume lanes have more carrier options
- Low-volume lanes may have limited service
Balance
- Headhaul - Primary direction (higher volume)
- Backhaul - Return direction (lower volume, often cheaper)
Competition
- Competitive lanes have many carriers
- Non-competitive lanes may have premium pricing
Lane-Based Pricing
Carriers price by lane based on:
- Distance
- Volume (supply/demand)
- Infrastructure (roads, ports)
- Density of deliveries
- Competitive dynamics
- Seasonal patterns
Lane Analysis
Questions to answer:
- What are our highest-volume lanes?
- Which lanes have the best/worst rates?
- Where do we have carrier coverage gaps?
- Which lanes have the best/worst service?
- Are there consolidation opportunities?
Lane Management Strategies
High-Volume Lanes
- Negotiate dedicated capacity
- Contract rates with commitments
- Primary + backup carrier strategy
Low-Volume Lanes
- Use spot market
- Consolidate with other freight
- Consider regional carriers
Imbalanced Lanes
- Seek backhaul opportunities
- Negotiate better rates on light direction
- Time shipments strategically
Lane Performance Metrics
- On-time delivery by lane
- Cost per unit by lane
- Carrier availability
- Damage rates
- Claim frequency
Ready to ship?
Compare shipping rates instantly
Try Free