A carrier routing guide is one of the most important documents in a shipper's logistics operation. It specifies which carriers should be used for which lanes, in what priority order, at what rates, and under what terms. A well-built routing guide reduces freight costs, improves service consistency, and ensures compliance with your company's logistics policies. Here is how to build one from scratch.
Define Your Lane Structure
Start by mapping all of your shipping lanes (origin-destination pairs) and categorizing them by volume, frequency, and strategic importance. Your top 20% of lanes typically account for 80% of your freight spend and should receive the most attention. For each lane, document the typical shipment profile: weight range, freight type, equipment needed, pickup and delivery requirements, and transit time expectations.
Select and Tier Your Carriers
For each major lane, assign 2-4 carriers in priority order. The primary carrier (Tier 1) gets first right of refusal on every load. If they cannot accept, the load cascades to Tier 2, then Tier 3. Base your carrier selection on contract rates, service performance (on-time delivery, claims ratio), capacity reliability (tender acceptance rate), and safety scores. Having multiple tiers ensures you always have capacity, even during peak seasons or when your primary carrier has a disruption.
Document Rates and Terms
Include contract rates, fuel surcharge formulas, accessorial fee schedules, and payment terms for each carrier-lane combination. Be specific: a rate of "$2.10/mile for dry van, origin Chicago IL to destination Atlanta GA, effective 2026-01-01 through 2026-12-31, fuel surcharge per DOE table v3, 30-day payment terms." Vague rate agreements lead to disputes. Also specify what happens when all tiered carriers are unavailable: do you go to the spot market? Do you use a freight broker as a backstop?
Set Performance Metrics and Review Cadence
Track carrier performance against defined KPIs: on-time pickup and delivery rate (target 95%+), tender acceptance rate (target 90%+), claims ratio (target below 1%), and invoice accuracy. Review performance quarterly and use the data to adjust carrier tiers. Carriers who consistently underperform should be moved down or removed. Carriers who exceed expectations should be rewarded with more volume.
Maintain and Evolve the Guide
A routing guide is a living document. Update it at least quarterly to reflect rate changes, new lanes, carrier performance changes, and market conditions. Major events like contract renewals, new product launches, or facility changes should trigger an immediate review. Communicate changes to your warehouse team, customer service team, and any third parties who book freight on your behalf. A routing guide that no one follows is worse than no guide at all.