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Blog · Board and management reporting · Freight brokers and 3PLs

Carrier concentration per lane: when one carrier is the lane

How a freight broker or 3PL measures the share of loads on each lane carried by its top carrier from the load ledger, sets a stated threshold per lane volume band, finds the lanes where one carrier's exit would leave shippers uncovered, and pairs the concentration with the carrier's acceptance trend so the risk is seen before the tender is refused.

The short answerCarrier concentration per lane is the share of loads on the lane moved by its largest carrier, from the load ledger, with the count of carriers used and the top carrier's tender acceptance trend beside it. A lane at 80 percent with one carrier whose acceptance has fallen for two months is a lane about to go to the spot market at a worse rate. The list is the lanes above a stated concentration threshold for their volume band, ranked by the shipper revenue on them.

A carrier sales team knows its carriers. The load ledger knows that on the Chicago to Dallas lane one carrier has moved eighty-one percent of loads this quarter and has started refusing tenders on Fridays. This guide sets out carrier concentration per lane, the threshold by volume band, the acceptance pairing, and the list.

The measures

Per lane, per period:

Top-carrier share = loads with the largest carrier ÷ loads on the lane Carriers used = distinct carriers with at least one load Top-carrier acceptance = tenders accepted ÷ tenders offered to that carrier, trailing eight weeks

The rows you need

  • Load ledger: load, lane, shipper, carrier, date, revenue, cost.
  • Tender log: tender, lane, carrier, date, accepted or refused.
  • Lane master: lane, volume band.

Shipper and carrier identifiers only.

The assertion

loads per lane = Σ carriers' loads on the lane

A load with no carrier, which is a load still uncovered or covered off-system, fails it and is listed.

Threshold by volume band

Loads per month Concentration threshold
Under 10 Not assessed
10 to 50 85%
50 to 200 70%
Over 200 55%

Stated on the report. A lane over its band's threshold is on the list.

A worked list

Lane Loads/month Top carrier share Carriers Acceptance now 8 weeks ago Shipper revenue exposed
CHI to DAL 210 81% 6 79% 96% $410,000
ATL to MIA 140 74% 4 97% 98% $190,000
LAX to PHX 60 88% 2 91% 93% $84,000

The Chicago to Dallas lane is the finding: over threshold, one carrier, and that carrier's acceptance has dropped seventeen points. Atlanta to Miami is concentrated with a carrier who is accepting everything, and that is a partner lane the report shows without alarm.

Where it goes wrong

One threshold for all lanes. Every small lane is a finding. Band by volume.

Concentration without acceptance. Facts without the warning.

Carrier subsidiaries counted separately. One carrier group looks like three. Roll up by group.

Uncovered loads dropped. They are the lane's current risk, not a data error.

Every week, per lane

Mapped once, the load ledger, the tender log and the lane master produce concentration, carriers used, acceptance trend and the list every week. Covirage builds this from the exports as they are. The freight page describes the setup, and the lane share guide covers the shipper-side measure this sits beside.

Questions people ask

What threshold is right?

It depends on lane volume. A lane with four loads a month will always be concentrated, and that is fine. A lane with two hundred loads a month at 80 percent with one carrier is exposure. Set the threshold per volume band, state it, and revisit it.

Why pair it with acceptance?

Because concentration is a fact and falling acceptance is the warning. A dominant carrier that accepts 98 percent of tenders is a partner. One that has slipped to 80 is about to hand the lane back, and the concentration says how much.

How is the risk valued?

At the shipper revenue on the lane times the share with the top carrier, or, where the broker tracks it, at the spread between the carrier's contracted rate and the current spot rate times the loads. The second is the cost of the lane going to spot; the first is what is exposed.