With millions of roads to choose from, shipping carriers often use pre-determined, tried and true lanes called freight lanes to take cargo from place to place. But why do transportation companies use the same freight lanes, and why are they so important?
Read on to discover the answers to these questions and more.
What Is a Freight Lane?
A freight lane, simply put, is any regular route that a carrier covers to bring or take cargo. Freight lanes are also sometimes called shipping lanes or trucking lanes and can include:
- Regular freeways or highways trafficked by truck drivers
- Regular shipping routes for aquatic vessels like cargo ships
- Regular air routes for shipping or mail planes
Think of freight lanes as the most regular, straightforward routes between common destinations. Of all freight lanes, there are three primary variations.
Owner-Operated Freight Lanes
Owner-operated freight lanes are what they sound like: lanes set up by individual owner-operators of trucking businesses. These are more common in local or small areas and often connect to regional or national hubs.
Regional Freight Lanes
Regional freight lanes are common shipping routes that operate in a small region of the US, typically within one state or metro area. Most regional trucking lanes connect to hubs that lead to national shipping routes.
National Freight Lanes
National freight lanes are long-distance but limited routes, typically between two major cities. For instance, they may go from Portland to Los Angeles, San Francisco to Houston, etc.
Many national freight lanes purposefully circle through multiple states or metro areas, linking with other smaller regional freight lanes while minimizing freight congestion.
Four Types of Freight Lanes
Freight lanes come in four primary types; understanding them will help you understand why they are so great for carriers.
Full and Partial Load Freight Lanes
Full and partial load freight lanes serve any cargo load that fills a trailer completely or partially. Full or partial truckloads usually ship commodities such as agricultural or energy goods, often transported on full and partial-load freight lanes.
Full and partial load freight lanes usually require a low workload on the part of carriers and consistency (which is important for profits). However, they also highly depend on regular customers, so losing just one regular client can mean losing the lane's usefulness.
Expedited Freight Lanes
Expedited freight lanes are those used for fast-tracked, urgent, or otherwise needed-as-soon-as-possible freight. Express or expedited freight lanes are usually point-to-point, with very few or no stops in transit.
Expedited freight lanes carry high rates but may also involve navigating narrow city streets or other roads that take extra time and fuel to progress through. Delays can also be stressful when using expedited freight lanes.
Long Haul Freight Lanes
Long-haul freight lanes are those intended to cover long distances, often connecting multiple states or metro areas. Long-haul freight lanes are used for loads that have across the country.
Carriers may use long-haul freight lanes for big jobs or cargo that needs to go long distances. They have a low per-mile cost, so they can be cost-effective, although they have a higher average total cost compared to shorter routes. Long-haul freight lanes also take longer for drivers, incurring higher labor costs.
Short-Haul Freight Lanes
Last are short-haul freight lanes, which include daily routes or routes that go through city streets. These typically cover less than 100 miles and are ideal for regional or local deliveries. They can also be cost-effective and popular for operators or delivery drivers (since they can usually go home every night).
However, short-haul freight lanes can also be somewhat stressful, depending on where they go and if they require operators to navigate through crowded streets.
Why Are Freight Lanes Great for Carriers?
Freight lanes are all around the country, and for good reason. They are advantageous for carriers due to their consistency, business relationship strength, and control over revenue.
Consistency
Regular shipping lanes give both carriers and their clients stability and consistency in delivery times. Established freight lanes mean drivers know exactly where to go each time they pick up cargo or deliver it to its final destination. They also allow clients and carriers to calculate rates more consistently, streamlining and solidifying business partnerships.
Stronger Business Relationships
Regarding business partnerships, carriers can run the same route multiple times and make regular clients from businesses, organizations, and even individuals. This even carries smaller advantages for individual operators or drivers.
Drivers may prefer one route over another due to traffic consistency, pitstops along the way, or even the people they can interact with from point A to point B. Overall, freight lanes result in stronger business relationships, making them popular among small and large carrier organizations.
Revenue Control
Lastly, freight lanes offer increased revenue control for carriers. As carriers learn what regular customers ship, they can better dial in the perfect freight rate and control revenue for their businesses. Predictable income is good in any industry, but it’s especially good for the carrier industry.
Shipping rates can fluctuate throughout the year due to seasonal shifts in traffic or the weather. Consistency means that carriers can pay their operators regularly, offer affordable rates to clients, and get more business overall.
The Bottom Line
All in all, freight lanes provide many important advantages for carriers, which is why they are used more often than backroads or lesser-known routes that may look like they facilitate faster travel times. If your trusted transportation specialist recommends using one freight lane over another, let them make the final call — odds are they’ll save you time, money, or both.
This is doubly true when you contract a trusted shipping specialist like RPM. At RPM, we contract with a comprehensive network of experienced carriers and know all the best freight lanes to get your goods where they need to go ASAP.
Contact us today to learn how we can help your business succeed.
Sources:
Freight Shipping: What is Freight & How it Works | FedEx
Freight and Congestion - FHWA Freight Management and Operations | FHWA
U.S. freight rates have peaked, another signal inflation is easing | CNBC
