4 Impacts on Carrier Lane Pricing

Carrier Lanes, or “freight lanes” as they are often called are simply routes that are routinely served by a carrier. Establishing lanes to operate in allows carriers to run more efficiently!

But how do carriers come up with their lane pricing? Here are four factors that carriers use when establishing their lane pricing. 

Freight Volume

Supply and Demand have an impact on carrier lane pricing just like it impacts your business. When more everyone’s competing for space on trucks, cost is likely to increase. When the demand is lower, lane pricing usually retreats with it.

Fuel Costs

As fuel prices rise carriers are forced to change their rates to offset their own increased operating costs. When fuel costs go down, however, the savings are often passed along to the shipper! Don’t worry this is something we are constantly watching and working towards continuously getting you the best rates as fuel costs fluctuate. 

Driver pay and Labor Availability

Once again we look at overhead of a carrier, this time specifically in the employment realm. If a carrier is struggling to find drivers, wages are likely to increase and that cost is reflected in the carrier lane pricing. 

Government Regulations

Uncle Sam has always played a part in the regulating of carriers across the country. The Hours of service (HOS) rules, the electronic logging device (ELD) mandate, and other government regulations can all directly impact carrier lane pricing. For example, the HOS rules caused an initial loss of productivity for carriers. That revenue loss meant carriers had to raise their lane pricing to stay profitable. These regulations have been in place for years now, and companies have been able to eliminate these as issues by deploying digital yard management systems, allowing them to increase profitability while following the guidelines to keep drivers safe.