During a shipper’s time with TLI, there may be reference to exclusionary lanes. What exactly is an exclusionary lane and why does it matter? This article looks to explain what this term means and how it helps shippers to route freight more effectively.
Exclusionary Lanes: What are they?
An exclusionary lane is a zip code to zip code pairing where a carrier will not rate for a shipment. The practice is most common in LTL shipping. The reason is that LTL Freight most commonly rate and move from some form of contract pricing. While the practice is most common in Less-than-Truckload shipping, contract Truckload carriers may also see exclusionary lanes.
There are many reasons for not wanting a carrier to populate when rating a lane. Here are some common reasons for placing an exclusionary lane:
Carrier Embargos
As highly seen in 2022, carriers may place an embargo on zip code pairings or on specific services. Carriers will place an embargo to alleviate service failures or capacity crunches. However, this may cause confusion when rates populate. Exclusionary Lanes exclude carrier rates if there is an embargo in place for a specific zip code.
Carrier Performance
Reviewing Key Performance Indicators may lead to a decision to exclude a carrier from a specific lane. This is a perfect time to use an exclusionary lane rule to ensure that rates do not populate from that carrier. Ensuring that freight is handled by carriers with excellent KPIs and performance.
Partner Carrier Service Areas
While carriers may rate on certain zip codes, the carrier may be working with a partner carrier. This is not always a problem, as partner carriers may work seamlessly in most cases. However, there may be a time a partner carrier slows down transit of the shipment and may not be a fit for the shipment.
How do Exclusionary Lanes Work?
Without getting too technical, TLI’s technology is able to input exclusionary lanes to ensure rates do not populate from that carrier for the lane. If a lane should include an exclusion of a carrier, then the carrier will not populate for the shipment upon rating. Giving you peace of mind that any individual scheduling a shipment will not have the option to choose that carrier.
Who Decides if a Lane Should be Excluded?
Shippers have full control over their freight program at TLI. If there is a specific carrier to exclude, our team will make it happen. Our team partners with top national and regional LTL carriers and thousands of truckload carriers, ensuring top selection for your freight.