What Are Freight Lane Rates? How a Lane Gets Priced
A freight lane rate is the going price to move a truckload between one origin market and one destination market. Here's what sets it, why the return trip costs a different amount, and how to read a lane before you quote.
A freight lane rate is the going price to move one truckload between a specific origin market and a specific destination market, on a specific type of trailer. Salt Lake City to Los Angeles on a dry van is one lane. Los Angeles to Salt Lake City on a dry van is a different lane, with a different rate.
That's the definition. The rest of this page covers what a lane is made of, the four things that set its rate, why the two directions never match, and how to check a lane rate you've been quoted.
What counts as a lane
A lane has three parts: where the freight starts, where it ends, and what it rides on.
- Origin market. Rate data groups pickups by market area, not by street address. A pickup in Ogden and a pickup in Provo both price off the Salt Lake City market.
- Destination market. Same idea on the delivery end.
- Equipment. Dry van, reefer and flatbed are priced separately on the same pair of cities, because each has its own pool of trucks.
Change any one of the three and you are looking at a different lane.
Lane rates are quoted per mile
A truckload lane rate is usually stated as a linehaul rate per mile, with the fuel surcharge added on top. Multiply by the loaded miles and you have the load's price before accessorials.
Here is the arithmetic on a 700-mile lane, using made-up numbers to show the structure:
| Direction | Linehaul per mile | Fuel per mile | 700-mile total |
|---|---|---|---|
| Outbound | $2.40 | $0.42 | $1,974 |
| Return | $1.65 | $0.42 | $1,449 |
Same road, same miles, same truck, and a $525 difference. These figures are an illustration, not a market quote. The gap between the two directions is the part that matters, and the next section explains it.
The layers inside a rate are covered in how freight rates are calculated.
The four things that set a lane rate
1. Direction: headhaul and backhaul
A carrier prices the round trip. When a truck delivers into a market with plenty of outbound freight, reloading is easy and the driver can be choosy. When it delivers into a market with little outbound freight, the driver either waits, takes a cheap load out, or drives away empty.
The lane running into the weak market is the headhaul. It pays more, because the rate has to cover the trouble of getting back out. The lane running out of the weak market is the backhaul. It pays less, because any revenue beats an empty trailer.
Which direction is which depends on the two markets. It can also flip during the year.
2. Lane density
A lane with heavy, steady volume has many carriers running it every day. They compete, and the rate stays close to cost. A lane with a few loads a week has few carriers who want it, and whoever takes the load sets the price.
Rural origins and destinations are the usual case. The miles into or out of a small town are often the most expensive miles on the load, because the truck probably arrives or leaves empty.
3. Length of haul
Short lanes cost more per mile than long ones. A truck spends about the same time loading and unloading whether the trip is 150 miles or 1,500, so on a short haul those hours are spread over fewer miles. Many carriers also set a minimum charge for a load, which pushes the per-mile figure on a very short lane higher still.
This is why comparing per-mile rates between a 200-mile lane and a 1,200-mile lane tells you nothing. Compare a lane against its own history.
4. Season
Demand on a lane moves with the calendar. Produce harvests pull refrigerated trucks toward growing regions. Retail stocking before the holidays tightens dry van capacity in the fall. Construction season raises flatbed demand in the spring and summer. Winter storms remove capacity from a region for days at a time.
A lane that is cheap in February can be expensive in June. What drives the freight market covers the calendar in more detail.
Spot lane rates and contract lane rates
Every lane has two prices at any moment.
The spot rate is what a load on that lane costs today, booked as a single shipment. It moves daily.
The contract rate is a price agreed in advance for that lane, for a period of months and an expected volume. It moves only when the contract is rebid.
When trucks are scarce, spot runs above contract. When trucks are plentiful, spot falls below it. Spot vs. contract freight rates explains when each one costs you less.
How to check a lane rate you were quoted
Four checks cover most of it.
- Ask for the all-in number. A linehaul rate with fuel and accessorials left out cannot be compared to anything. Get one figure that includes all three.
- Divide by loaded miles. That gives you the all-in rate per mile for this lane.
- Compare it to the same lane, not to another lane. Use your own past invoices on that origin and destination if you have them.
- Check the direction. If your freight runs against the usual flow, expect to pay more than someone shipping the other way. If it runs with the flow, ask whether the rate reflects that.
How we price a lane
At Lancashire Freight you enter the origin, destination and equipment, and get a binding all-in rate in 60 seconds. Fuel is included in the number. The rate is locked for 48 hours, so you have time to compare it before you book.
FAQ
What is a freight lane rate?
A freight lane rate is the price to move a truckload between one origin market and one destination market on one type of trailer. It is usually quoted as a linehaul rate per mile, with a fuel surcharge added.
What is a lane in trucking?
A lane is a route between two markets that a carrier or shipper runs regularly, such as Salt Lake City to Los Angeles. Each direction is its own lane, and each equipment type on that route is priced separately.
Why is the rate different in each direction on the same lane?
Because carriers price the round trip. The direction that ends in a market with little outbound freight pays more, since the truck will struggle to reload. The opposite direction pays less, since the carrier would otherwise leave empty.
What is the difference between a headhaul and a backhaul?
A headhaul is the higher-paying direction, running into a market where trucks are hard to reload. A backhaul is the lower-paying direction, running out of that market, where carriers accept less to avoid driving empty.
How are freight lane rates calculated?
A lane rate starts from recent paid rates on that origin, destination and equipment type. It is then adjusted for the load's weight, lead time and appointment requirements, and fuel and accessorials are added to reach the all-in price.
Why do short lanes cost more per mile?
Loading and unloading take about the same time on any trip, so on a short haul that fixed time is spread over fewer miles. Carrier minimum charges raise the per-mile figure further on very short lanes.
Get an all-in rate on your lane, locked for 48 hours.